TGE is a fundraising model which has recently emerged as an evolutionary
version of an ICO which is one of the solutions that CTIA conceived to
protect users. We will continue to conduct strict assessments for our
clients and facilitate development of their projects as TGEs around the world.
The fairness of a TGE is said to lie in its highly compliant formula.
Generally, an ICO is a project with no due diligence nor KYC/AML procedures
which directly raises funds from users whose thoughts on the idea
represented by the project are aligned. Users are required to interpret
feasibility and legality of the project in its technical materials such
as a whitepaper and roadmap, meaning they invest based on their own judgement.
Also, there is a possibility that the funds a project receives
from unidentified users may be related to organized crime groups or
money laundering schemes. ICOs could bring a great risk to those who participate in them.
In a TGE, these problems will be prevented by adequate due diligence and KYC/AML checks.
CTIA has integrated the "BCP Framework" into the due diligence procedure.
The framework developed by MME, a legal, tax, and compliance firm in
Switzerland, is used as a criterion for evaluating the risk of a token by
categorizing a project’s token based on its functions or properties and
also calculating risks based on set measurements.
We use the framework as a gauge to provide fair
due diligence services based on global standards.
“Token Generator” is a token sales application
where TGE will be conducted. The application is managed and
operated by GCG, one of CTIA’s partners. Only users who have
successfully passed KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures
will be able to register in the app where personal information
and ID are required in the registration process. Its proprietary system
will detect if a user has a criminal background or is a PEP (Politically Exposed Person).
This will enable the platform to be a safer method
where only approved users of the strict audit are given access.