Ravencoin — KYC Transitivity

What does that even mean, “KYC Transitivity”? It’s a term that I heard once in the context of entities trusting KYC from others, and it resonated with me so I adopted it.

KYC Transitivity is a logical and trust relationship between entities.

Let’s define our five players:

• A— Entities that have a policy of doing KYC correctly and thoroughly and then tagging Ravencoin addresses. This would include Finclusive.
• B — Users that can’t hold securities tokens without KYC being done for regulatory reasons. This can be the general public or accredited investors.
• C — Companies that can only interact with B if KYC is done. This would include exchanges or alternative trading systems (ATS).
• D — An issuer of a token like $NEWCO. This is someone wanting to raise money for their business in an STO.
• E— Regulatory agencies that enforce the rules around the Bank Secrecy Act and additional Patriot Act requirements. This would include FinCEN, FBI, etc.

Ok, so let’s say that D (token issuer) wants to issue $NEWCO tokens that are limited and only to known (KYCed) parties for regulatory reasons. The $NEWCO token can be restricted to only Ravencoin addresses that have the #KYC_F tag.

D sends the future token holder to A (qualifier) to have their information collected, stored, and a tag applied to a Ravencoin address. Once the tag has been applied, D can safely issue and send the…