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Audit Standards For Listing of Digital Assets

Time:2017-11-15

Assets Digital Coupons Exchange (ADCEX)

Listing audit standards

 

General rules

ADCEX is an important part of the global digital economy market. It adheres to the principle of “fairness, impartiality and openness” and provides a platform for the interaction and exchange for the vast number of digital economic enthusiasts. In order to promote the digital economy to further serve the real economy, promote the process of digital assets, help enterprises’ digital transformation and realize efficient digital assert circulation system as soon as possible,

ADCEX issues Listing Audit Standards For Digital Assets(coupons) (hereinafter referred to as “standard”), formally accepts the digital assets (coupons) online listing application of all types of enterprises and institutions at all levels, and uses this standard to carefully review various applications.

I, Applicant qualifications

1) Limited liability company

The applicant is a limited liability company and can be able to provide anchoring asserts of not less than 50 million US dollars or the equivalent value. The company must have a clear organizational structure, personnel structure and clear debt and credit details. The company, legal person and major shareholders shall have no bad credit records nor illegal criminal records; it must present the investor agreement, a complete share transfer agreement, the resumes of legal person and the top five shareholders, the introduction to the company’s main business, the financial statements in the recent three years, the property rights of asserts(including tangible assets and rights, copyright, patent rights etc.), the proof of value, the proof of unsecured asserts, the future development plan, the specific introduction to the strategic basis and so on.

2) Incorporated company

The applicant is an incorporated company and can be able to provide anchoring asserts of not less than 50 million US dollars or the equivalent value. The company must have a clear organizational structure, personnel structure and clear debt and credit details. The company, legal person, major shareholder and actual controller shall have no bad credit records nor illegal criminal records; it must present resolution of shareholders’ meeting, shareholder list, equity structure, legal person in the recent 3 years, the resumes of the top five shareholders and senior executives, the introduction to the company’s main business, the financial statements in the recent three years, the property rights of asserts(including tangible assets and rights, copyright, patent rights etc.), the proof of value, the proof of unsecured asserts, the future development plan, the specific introduction to the strategic basis and so on.

3) Organization

The applicant is an organization and it must present legal documents, official approval of the superior unit, organization structure,  assets list, assessment report,  source of funds, the development plan, national or provincial support document, development funds, investment and financing contracts, etc.

 

II, Auditing standards

1) The distribution of digital assets(coupons) must be based on the technology of block chain

Start-ups, emerging institutions and entrepreneurs solved the difficult financing problems in the early stage of business by distributing digital asset (coupons) financing, making it possible for start-up projects to have the funds and opportunities to develop and make success. This is undoubtedly a major “innovation” for the promotion of innovative society, which helps cultivate  millions of entrepreneurs in the future. However, the reality is not so good. The society is full of misappropriation of project funds, the absconded, false transactions and other phenomena, which has seriously damaged investors and caused the social distrust. In order to protect the interests of investors and ensure that the project is held on schedule, we require all digital assets (coupons) listed online to use the underlying technology of the block chain, and to disclose source cord and technical documentation to the auditor.

2) Distributed digital assets (coupons)  must be anchored in physical value.

The digital economy is based on the digitization of assets instead of the virtual currency. Only by digitalizing the real asset to make the generated digital asset (coupons) anchor the real value can it map the value itself and have the meaning of exchange and consumption. Physical assets are made up of tangible assets and intangible assets.  Tangible assets includeMinerals, real estate, house property, factories, production lines, commodities, etc; Intangible assets include Patent, copyright, publishing right, right of use, right of income, etc. All digital assets (coupons) listed online must correspond with physical assets, and the total amount is constant.

3) Possess the assessment report of the third party organization

The publisher must provide a value assessment report on the project issued by a third-party agency, assessing and rating the project model and the value of digital asset (coupons) respectively. The third-party organization is a professional digital economy project assessment agency approved by ADCEX. The assessment result is not related to ADCEX.

4) Digital assets (coupons) must have application channels.

The publisher must clarify the application scenario of digital assets (coupons) and sign an application contract with the enterprises and institutions in related industry to ensure that the digital asset (coupons) plays a practical role in the digital economy. The application of digital assets (coupons) must maintain a positive growth trend. If it does not achieve positive growth for three consecutive years,  it will be delisted for liquidation.

 

III, The collection and supervision of asset

Any digital asset  (coupons) that wants to be listed online, the anchored physical assets shall be supervised by the ADCEX designated asset reserve regulator. The publisher must sign a supervision contract with the institution and grant all the rights of the asset reserve regulator under the contract, including the right to liquidate the assets of the publisher that breached the contract.

 

IV, Implementation rules

Implementation rules will be issued and implemented by third party agencies.

 

V, Application submission

Please submit the application information through ADCEX official mailbox at the email address: adcex@adcex.com.

 

The final interpretation of this standard shall be reserved by ADCEX.

 

 

                                      ADCEX

                                  November 15, 2017