Regulatory Compliance

Acumen is incorporated in El Salvador. El Salvador has been a forward leaning country in adopting cryptocurrencies, thus creating a favorable regulatory environment for companies incorporated in El Salvador. Acumen has dedicated significant time and effort to building a protocol that is regulatory compliant. As such Acumen has been granted three separate licenses to pursue our tokenization model.

Authorized Lender & Master Account Holder

The Acumen DAO has been recognized as an authorized lender by the Central Bank of El Salvador, making it the first DeFi protocol and DAO to receive such authorization from a Central Bank. This sets a significant precedent, as it allows Acumen to pursue real-world lending models while maintaining regulatory clarity – a rarity among DeFi protocols. Being recognized as an authorized lender means that the Acumen DAO can hold a contractually secured position on the capital it deploys, and borrowers have a legal obligation to repay the Acumen DAO. As funds are generally deployed with the backing of collateral in the Acumen ecosystem. Additionally, Acumen DAO is an authorized master account holder with the Central Reserve Bank of El Salvador

Digital Asset Service Provider

Acumen has also been granted a Digital Asset Service Provider license. This license gives Acumen the authority to tokenize assets and financial instruments. This license also grants a permanent tax exemption on crypto emissions and interest, allowing Acumen to seamlessly transfer value from the borrower firm to investors and liquidity providers without tax implication.

Bitcoin Service Provider

Acumen was also granted the license of Bitcoin Service Provider which would allow for the structuring of financial products and services around Bitcoin. While this license doesn’t currently hold a use within out workflow, we plan on implementing it in future products.

These licenses are a critical component of the ecosystem, as it ensures that the Acumen protocol can operate freely without the fear of overzealous government regulation.