In the context of Liminal.market, regulatory issues are primarily handled by the licensed broker service, ensuring that the platform remains compliant with relevant rules and regulations. This section of the whitepaper will discuss key aspects of the regulatory framework surrounding Liminal.market.
Regulatory compliance is a critical aspect of operating within the financial industry. Liminal.market addresses this by partnering with a licensed broker service, which manages the regulatory requirements associated with trading securities. This partnership allows Liminal.market to focus on providing a seamless and user-friendly trading experience while ensuring that the necessary regulatory standards are met.
The tokens issued on Liminal.market's blockchain do not have any real value and cannot be traded on the open market. They serve as a UI element, displaying the quantity of tokens a user owns, which corresponds to the underlying assets held in their brokerage account. By limiting the tokens' functionality in this manner, Liminal.market ensures that the platform does not raise additional regulatory concerns related to the tokens' tradeability or potential secondary market activities.
Although the tokens issued on Liminal.market's platform do not have any real value, they can be used to send order commands by calling the transfer function. This enables users to execute trades on the platform using the tokenized representations of their underlying assets. However, it is important to note that the actual trading of securities occurs at the broker level and is subject to the regulatory framework governing the licensed broker service.