On most chains, “verified investors only, not in these countries” is code someone has to trust. On Arxium the issuer sets it, and the chain enforces it on every transfer.
Who enforces the rule
A smart contract or the app's backend, written per asset.
The chain, at execution. A transfer that breaks the asset's rules is refused.
What a bypass takes
A bug in one contract, or an app that skips the check.
Breaking consensus. Every validator replays the same rule.
What an auditor checks
The contract code, the app, and whoever runs them.
The block and the refusal reason. Arx Verify checks state proofs without a node.
Where personal data lives
Often in the app, sometimes on-chain.
With the KYC provider. The chain holds only claims, like KYC passed.
Institutions add checks on top. None of them can remove the protocol’s minimum underneath.
Apply your own checks and keep the decision evidence, linked to the exact transfer.
A holder and institution co-signature can make approval mandatory. Account policies limit recipients and spending.
The issuer's configured rules still apply to every transfer, whatever the layers above decide.
Required co-signing is account-scoped, not an automatic issuer veto over every holder. Privileged corrective actions stay separate, explicitly authorized and recorded.
An issuer sets required claims, allowed countries, attestation age, holder caps, balance caps, supply cap, freezes, locks, and recovery. Both ends of every transfer have to pass.
Required claims (KYC, AML, accredited investor), allowed countries, and a maximum age for attestations.
Maximum number of holders, maximum balance per holder, and maximum supply.
Freeze an asset or one holder, lock issuance for good, forced transfer and recovery, each with a recorded reason.
Patterns the chain supports today. None describes a live product or a customer.
Units that only KYC'd holders in chosen countries may own. Anyone else is refused by the chain, so no app can route around it.
Stay under a prospectus limit by construction. The chain refuses the holder who would go over the limit, or a balance over the cap.
Lock part of a holder's balance until a date, for lock-ups and vesting, without a custom contract.
When a holder loses a key, the issuer moves the position to a new account. The reason is written to the block.
Require recent KYC. When it expires, the holder can't receive the asset until it is renewed.
Stop transfers for an incident or a court order, and resume them. Every freeze carries a reason on-chain.
