Chapter 6: Compliance Roadmap and Security Guarantees

The MSX platform is committed to operating in accordance with globally recognized regulatory frameworks. Compliance, transparency, and security form the foundation of MSX’s development strategy, ensuring that users interact with a trading environment that is safe, legally aligned, and institutionally trustworthy.

6.1 Compliance Credentials

MSX is committed to building a globally trustworthy digital asset trading ecosystem, strictly complying with financial regulations and anti-money laundering requirements in its operating jurisdictions. Compliance status is a core pillar of its professional operations. Currently, it has obtained compliance credentials:

US FinCEN MSB

The platform has completed registration with the US Financial Crimes Enforcement Network (FinCEN) Money Services Business (MSB). This registration is the foundation for the platform to legally conduct digital asset trading, exchange, and transmission services in the United States.

SEC STO Registration

The platform has completed Securities Token Offering (STO) registration with the US Securities and Exchange Commission (SEC). This milestone ensures that MSX's token issuance and trading activities comply with US regulatory requirements, providing important guarantees for the legality and tradability of its assets.

Anti-Money Laundering (AML) and Compliance Obligations

MSX strictly fulfills compliance obligations to ensure the platform's trading ecosystem is secure and transparent:

AML/CFT Framework

MSX has established a robust Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) framework, monitoring suspicious addresses and suspicious transaction records in real-time, ensuring trading activities meet international financial institution standards.

Compliance Data Monitoring

The platform system has transaction behavior monitoring and risk screening capabilities, able to identify and block suspicious transactions, ensuring platform services are not used for illegal purposes.

6.2 Security Guarantees

Reserve Transparency: Merkle Tree Proof

Proof of Liabilities

MSX regularly generates liability snapshots of all user assets and performs cryptographic calculations through Merkle Tree structure, publishing the final Merkle Root hash value on-chain.

User Verification

Users can use their asset information and the Merkle Proof provided by the platform to independently verify locally whether their assets are fairly included in total liabilities. Combined with publicly disclosed asset custody addresses, users can verify the platform's reserve sufficiency.

The platform adopts the strictest blockchain security practices and governance mechanisms to eliminate single points of failure and centralization risks.

Smart Contract Audits and Permission Control

Continuous External Audits

All core smart contracts of MSX (including minting, liquidation, oracle, and funding rate contracts) are audited by authoritative third-party security teams in the industry (such as CertiK). Audit reports are made public to the community, ensuring code reliability.

Permission Control

Upgrade and fund movement permissions for key platform contracts are jointly controlled by time locks and multi-signature wallet mechanisms. Any critical changes must undergo predetermined multi-signer joint authorization and delayed execution periods before taking effect, providing the community and auditors with supervision time.