The use of Smart contracts for the management of financial instruments, in most countries requires compliance with a series of multilateral requirements according to financial regulations between jurisdictions and the type of financial instrument, conflicts of laws, privacy issues and legal security of those involved in the smart contract.
For this reason it is necessary to determine a EIP ETHEREUM-FINANCIAL-INSTRUMENTS for this purpose accompanied by development software under MIT License and be totally transparent to the end user. Providing facilities to fintech and developers in the process of financial regulation of their projects.
This proposed standard should be symmetrically standardized with all blockchains like this proposal in
VEP VENOM-FINANCIAL-INSTRUMENTS on Venom.
All collaboration and constructive suggestions are welcome.
Knowledge of international financial markets, software development, quantitative analysis are required for this purpose.
EIP-001: ETHEREUM FINANCIAL INSTRUMENTS
author: Rafael Mañez <rafael.manez@**********>
type: Standards Track
ETHEREUM FINANCIAL INSTRUMENTS. It is an open standard for the management of financial assets in a multilateral system with different jurisdictions and different financial regulations as well as inter-blockchain compatibility and distributed ledger technologies.
As an example of a regulated financial instrument, I present the case of company shares: To negotiate company shares by ISIN, it is necessary to determine the jurisdiction of validity of the transaction, asset quality, market type, brochures, where to pay taxes for capital returns, transaction revocations, information of the issuer and receiver of the transactions, asset status that we are going to negotiate in a certain jurisdiction, legal blockades, legal recovery and all this among multiple laws that multilaterally affect the transactions of company shares.
The main motivation is to unify financial systems in a decentralized multilateral system with the objective of standardizing the management of financial instruments, without forgetting the particularities and operations of each one.
The keywords “MUST”, “MUST NOT”, “REQUIRED”, “SHALL”, “SHALL NOT”, “SHOULD”, “SHOULD NOT”, “RECOMMENDED”, “MAY”, and “OPTIONAL” in this document are to be interpreted as described in RFC 2119.
MUST be Open Source Smart Contract MIT License
MUST have T-sol<–>Solididty compatibility only digital and decentralized compatibility
- Centralized support is OPTIONAL
MUST manage Instruments: company shares, bonds, derivates, contracts
MUST allow third party audit: National Competent Authorities (NCa’s) and Central Financial Authorities as ADGM Authorities, ESMA, NFRA, SEC, …
MUST be able to grant permissions for third parties (Access, Views, SeenByThird, operations, privacy level and identities by nominal name or alias)
MUST interpret Jurisdictional limits.
MUST allow validation transaction.
MUST have security on transactions.
MUST allow Block and Unblock assets.
MUST allow Revocations and recoveries.
SHOULD have Asset history.
MUST allow transform financial rules into programmable financial rules.
MUST be scriptable functions (Interactive and non-Interactive) for manage by artificial intelligence
MUST allow rule injection.
MUST be inter-blockchain and distributed ledger technology compatibility.
- The issuance of the financial instrument MUST be covered by the competent authorities.