Owner: CrownThrive, LLC Date: 2025-08-08 Classification: Internal — DAO Compliance Standards, Regulatory Engagement, and Policy Enforcement Protocol
1. Purpose & Scope
This document defines the compliance, legal, and regulatory alignment framework for CHLOM Global DAO during Phase 4. It ensures that all DAO operations, partner integrations, licensing processes, and governance actions adhere to relevant global regulations, while positioning CHLOM as the de facto decentralized compliance authority in its sector.
Goals:
- Establish a unified compliance standard for all DAO activities.
- Build interoperability with multiple jurisdictional requirements.
- Leverage AI and ML for real-time compliance monitoring.
- Prepare the regulatory foundation for full DAO autonomy in Phase 5.
2. Compliance Pillars
- Licensing Enforcement
- Global KYC/KYB Integration
- Jurisdictional Mapping Engine
- AI-Powered Risk Assessment
3. Smart Contract Modules
- Compliance Enforcement Contract (CEC) — Validates every transaction against the DAO’s regulatory matrix before finality.
- Sanctions & Licensing Oracle — Real-time API calls to verify participant eligibility.
- Regulatory Update Module — Enables DAO to update compliance parameters via governance vote without redeploying core contracts.
4. Regulatory Engagement Process
- Jurisdictional Liaison Network: DAO-appointed representatives for priority markets.
- Standards Collaboration: Work with ISO, W3C, and blockchain regulatory bodies.
- White-Label Compliance Services: Allow enterprises to leverage CHLOM’s compliance engine for their own ecosystems.
5. Policy Enforcement Workflow
- Rule Creation: Drafted by DAO Compliance Committee.
- Governance Vote: Ratification by token holders.
- Automated Deployment: Push updates to on-chain compliance contracts.
- Monitoring & Reporting: Generate audit-ready compliance logs.
6. Security & Data Protection
- Zero-Knowledge Proof Boundaries: Ensure sensitive data is never exposed during compliance checks.
- Encrypted Audit Trails: Immutable storage of compliance decisions.
- Dispute Resolution Hooks: Allow regulated entities to challenge compliance decisions via DAO arbitration.
7. Phase 4 → Phase 5 Evolution
- Phase 4: Hybrid compliance model — AI + DAO oversight.
- Phase 5: Fully autonomous compliance enforcement with AI-driven parameter adjustments.
Summary: The Compliance & Regulatory Alignment Framework creates a scalable, auditable, and future-proof legal backbone for CHLOM Global DAO, ensuring that decentralized governance remains compliant while leading global blockchain standards.