5.4 Regulatory Response Framework

To address the critical challenge of navigating regulatory environments, Punkvism establishes a comprehensive regulatory response framework for RWA exchange operations.

Tiered Compliance System A modular compliance structure flexibly adapts to diverse regulatory landscapes:

• Global Baseline Standards: Minimum compliance criteria applied universally across all regions.

• Regional Regulatory Layers: Specialized regulatory modules for key regions including Asia, Europe, and North America.

• Country-Specific Customization: Customized responses to meet specific national regulatory requirements.

Legal Structure Optimization A legal framework minimizes regulatory risks while ensuring operational efficiency:

• Legal Entity Strategy: Establishing entities aligned with regional regulatory requirements.

• License Portfolio: Securing relevant licenses in key markets.

• Enhanced User Protection: Transparent terms of service and privacy policies.

Adaptive Regulatory Response An adaptive approach enables swift responses to rapidly evolving regulatory landscapes:

• Regulatory Monitoring System: Real-time tracking and monitoring of global regulatory shifts.

• Regulatory Sandbox Participation: Active involvement in regional regulatory sandbox programs.

• Collaboration with Regulators: Transparent communication and cooperative relationships with key regulatory authorities.

This comprehensive regulatory response framework ensures Punkvism’s sustainable operations in global markets, providing stakeholders across various countries with a secure and trustworthy RWA trading environment.