📑 8. Legal & Compliance

8.1 Regulatory Framework

Token Classification: AIBG is positioned as a utility token with the following characteristics:

• Primary use for platform services (generation, voting)

• No promise of profits from others' efforts

• Decentralized governance transition plan

• Not marketed as investment contract

Jurisdictions:

• Entity incorporation: Cayman Islands (Foundation)

• Operations: Singapore, Switzerland subsidiaries

• Compliance: Ongoing consultation with regulatory experts in each market

8.2 KYC/AML Procedures

Tier 1 (< $1,000 equivalent):

• Email verification only

• Access to basic features

Tier 2 ($1,000 - $10,000):

• Identity verification via Onfido

• Proof of address

• Full platform access

Tier 3 (> $10,000):

• Enhanced due diligence

• Source of funds verification

• High-value creator benefits

Monitoring: Real-time transaction monitoring for suspicious activity, reporting to relevant authorities as required.

8.3 Intellectual Property

User-Generated Content:

• Creators retain IP rights to their generations

• AIBG receives non-exclusive license for platform display

• Commercial rights remain with creator

• Winning pieces may be featured in marketing (with consent)

Platform Technology:

• Patent pending on voting algorithm

• Trademark protection for AIBG brand

• Open-source smart contracts (transparency)