Please describe your proposed solution.

The position of regulators related to digital assets is still evolving; regulators are still in the earliest stages of understanding and confirming their initial position. Further, the evolution of regulation will struggle to keep pace with the advancement of blockchain technology. This is a contrast to the insurance industry, which is heavily regulated.

To bridge the gap, FIDA aims to achieve regulated status and for the regulator to be comfortable with the platform’s structure at policy and portfolio level including the RDR.

Bermuda is a global leader in financial regulation related to the use of Blockchain and Crypto currencies. It therefore has the most favorable regulatory conditions and vision for the future of blockchain. The Bermuda Monetary Authority (BMA) is committed to working with InsureTech start-ups to provide innovative solutions in the ever-evolving insurance marketplace. The BMA has introduced the innovation 'Class IIGB' of insurers for the token economy.

The new Class IIGB is designed for insurer business models utilising digital assets providing a case-by-case assessment that we believe FinBand will qualify. The Class IIGB insurer regulatory reporting framework and statutory financial statements is based upon audited US GAAP, IFRS or any other GAAP recognised by the BMA and will require Class IIGB insurers to provide for public filing of both these statements and the Declaration of Compliance.

How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?

By establishing a precedent for Cardano based project with the Bermuda Regulatory Financial Authorities and open-sourcing the process, we will provide a blue-print route to a fully regulatory compliant status for other projects. We expect, and will help, others come onboard and continue to extend the use of the Cardano Blockchain in other industries providing real world utility.

This probably also applies to projects in other regulated sectors, and not just the insurance industry. We also believe approving this proposal sends a strong signal that Catalyst is Cardano's internal VC and companies from all sectors are welcome to BUILD the next financial system on Cardano!

How do you intend to measure the success of your project?

To be successfully setup in the BMA's sandbox environment and having our git repository with multiple stars and forks as we help others undertake similar efforts.

Please describe your plans to share the outputs and results of your project?

We will host all documents, experiences and a step by step guide, complete with contacts on how we were able to acquire the regulatory clearance.

What is your capability to deliver your project with high levels of trust and accountability?

There is no market risk; only execution risk. We have a dedicated point-person on the team tasked with obtaining the regulatory status, working with lawyers on the ground. There are several examples of similar entities obtaining this regulatory clearance for non-Cardano based blockchain projects and we will be using this to establish a similar regulatory status for our project on Cardano.

What are the main goals for the project and how will you validate if your approach is feasible?

The main goals are:

1) Incorporate in Bermuda.

2) Achieve IIGB regulatory status with the BMU.

3) Run our risk transfer protocol on Bermuda's regulatory sandbox

We have already validated the feasibility of the approach by research the requirements to obtain the status.

Please provide a detailed breakdown of your project’s milestones and each of the main tasks or activities to reach the milestone plus the expected timeline for the delivery.

1. Acceptance into the BMU innovation hub by 15th Dec 2023
2. Incorporation of Company 15th March 2024
3. Achieve status in Regulatory Sandbox environment by 15 July 2024

Please describe the deliverables, outputs and intended outcomes of each milestone.

Deliverables align with the above milestones

1. Procedural documentation, as well as all fillings for receiving ccceptance into the BMU innovation hub by 15th Dec 2023.
2. Procedural documentation, as well as all fillings for Incorporating the Company 15th March 2024
3. Procedural documentation, as well as all fillings for Achieving status in Regulatory Sandbox environment by 15 July 2024

Please provide a detailed budget breakdown of the proposed work and resources.

Here is a list of the fees that will be needed to go through the entire process

Regulatory application fees = $8,750 + $2,266 +$10,340 +$5,000

Fees to incorporate = $25,000

Legal fees $25,000

Additional expenses will likely include travel, technical writer hours, potential re-application and additional legal fees, these as well as any unforeseen expenses will be paid for out of pocket.

Who is in the project team and what are their roles?

Andrew Bowness: CEO

Rodolfo Hansen: CTO

How does the cost of the project represent value for money for the Cardano ecosystem?

By establishing a precedent for Cardano based project with the Bermuda Regulatory Financial Authorities, in addition to open-sourcing the process, this will provide a blue-print route to a fully regulatory compliant status for other projects.