The MELD Foundation serves as a licensed money service business under the Swiss financial, legal framework.
For compliance, foundations are required to provide transparency to fiat reserves, audits on the specific amounts, and verifiable access to the total accessible fiat amount. Also, documentation that provides an auditable schedule contains all the details of the accounts. Traditional methods of financial transactions under fiat currencies require that the MELD Foundation perform KYC/AML procedures that verify the user’s identity upon depositing, withdrawing, receiving, or paying loan interests in fiat.
Under our current legal framework, no laws can be violated in the legal jurisdiction in which the foundation operates.
- Foundations need to be licensed or authorized to hold fiat in their legal framework.
- Foundations need to perpetually prove reserves, that no fiat fund was lost out of thin air, and that they still have access to enough fiat to return to lenders when required.
- Foundations need to audit on a specified schedule all of the accounts.
- Foundations need to perform KYC and AML procedures to verify users upon depositing fiat, withdrawing fiat, receiving loans, and paying loan interest.
- Nothing in our fiat ecosystem should violate the laws of our legal jurisdiction.
The MELD Foundation is the formal legal entity that controls the fiat accounts used by the protocol.