10. Jurisdiction & Regulatory Framework

Jurisdiction & Regulatory Framework: Estonia

Estonia has established itself as one of the most progressive digital jurisdictions in the European Union, offering a forward-thinking regulatory environment for blockchain-based initiatives. Asset Avenue is registered and operates under Estonian law, benefiting from the country's robust e-governance infrastructure and its clear stance on digital assets and decentralized organizations.

Compliance with Estonian and EU Law

Asset Avenue complies with all relevant legal requirements in Estonia and the broader European Union, including but not limited to:

• AML/KYC Regulations: All members are subject to Know Your Customer (KYC) verification and Anti-Money Laundering (AML) checks. These procedures are in line with the EU's 5th Anti-Money Laundering Directive (5AMLD), ensuring secure and transparent onboarding of club members.

• Utility Token Classification: AAV tokens are used exclusively for accessing membership levels and participating in club activities. They are not marketed as investments, nor do they grant any rights to passive income. This aligns with Estonia’s guidelines for utility tokens, distinguishing them from regulated securities.

• No Custodial Services or Investment Intermediaries: Asset Avenue does not hold client funds or assets in custody, and it does not act as an investment intermediary. All transactions and agreements are peer-to-peer among members of the club. This means we are not subject to investment firm licensing under Estonian law.

• Private Membership Structure: As a private club, Asset Avenue is not open to the general public. Participation is by invitation only, and internal rules require that members actively contribute to projects. This structure ensures compliance with local rules concerning collective investment schemes and avoids public solicitation.

DAO and Contract Law Recognition

While Estonia has not yet introduced specific legislation for DAOs, existing Estonian contract law allows for the creation of flexible and enforceable member agreements. Each project DAO operates under a framework that ensures:

• Transparent governance

• Member voting rights

• Documentation of participation and decision-making

These elements align with EU principles of good governance and digital contract enforcement.

Future-Proofing Through Legal Advisory

We work closely with Estonian legal advisors to ensure that our operations remain compliant as new EU-wide frameworks for crypto assets, such as MiCA (Markets in Crypto-Assets Regulation), come into effect. Our legal infrastructure is designed to adapt rapidly to regulatory updates while preserving the core ethos of decentralization and member empowerment.