11.3 Legal & Regulatory Risks

Regulatory scrutiny is intensifying globally around tokenized assets and decentralized governance structures. Misclassification as a security or misalignment with KYC/AML regulations could jeopardize the project.

Mitigation Strategy:

• Jurisdictional Structuring: Asset Avenue operates with a Swiss-based legal framework and collaborates with compliance partners like ScaleCompliance.com. This enables legal clarity around the issuance and transfer of tokenized assets.

• SPV & DAO Framework: Real estate assets are owned through SPVs, each governed by a dedicated DAO. This aligns with cooperative laws and removes the passive income element that might trigger securities classification.

• Ongoing Legal Consultation: A dedicated legal advisory board regularly evaluates global legal updates and coordinates with local experts in each operating market.