Regulatory Navigation

To effectively bridge the gap between traditional maritime practices and innovative blockchain technology, Fractalized has adopted a streamlined legal and operational model designed for compliance, simplicity, and scalability. This model focuses on a single operational company structure for tokenizing high-value maritime assets.

We have assembled a team of specialized experts to address the complexities of tokenizing maritime assets across jurisdictions. This includes professionals with expertise in shipping ownership and operations, marine Sale & Purchase (S&P) specialists from SSY, fintech and regulatory advisors such as Roger Blears for Financial Conduct Authority (FCA) compliance, and blockchain-specific legal guidance from Vircon Legal. Additionally, we collaborate with Senol & Somran for maritime legal matters. Together, these experts ensure that Fractalized adheres to international regulations while offering investors a robust, transparent framework for asset tokenization.

Tokenized Ownership and Regulatory Compliance

Fractalized employs a single operational company structure to directly tokenize and manage income rights from commercial shipping vessels. This approach reduces administrative overhead while maintaining compliance with global regulations. Key elements of this model include:

1. Direct Tokenization: The operational company tokenizes income rights and distributes returns to investors efficiently, using blockchain for transparency and ease of access.
2. Simplified Legal Framework: By eliminating the need for DAOs or intermediary entities, Fractalized ensures that tokenized ownership is governed under the laws applicable to the operational entity, avoiding the complexities associated with multi-entity governance.
3. Separation of Ownership and Management: The operational company retains ownership of the vessels, while technical management is handled by Kaptanoglu Holding and commercial management by firms like Uni Tankers Ltd. This structure ensures that tokenized ownership does not impact the operational performance of vessels or compliance with maritime regulations.

Advantages of the Single-Company Model

1. Operational Simplicity: By consolidating operations under a single entity, the structure avoids the inefficiencies and legal challenges associated with DAOs or multi-entity frameworks.
2. Regulatory Alignment: The single operational company is better positioned to comply with international regulations, providing clarity and security to token holders.
3. Enhanced Appeal: The simplified model is easier to understand and evaluate, making it more attractive to all users, institutional and retail.
4. Cost Efficiency: By streamlining operations, Fractalized minimizes administrative and compliance costs while maximizing potential proceeds from operational income.

VASP Laws and Token Issuance

Fractalized benefits from a regulatory environment that does not require Virtual Asset Service Provider (VASP) licensing for blockchain-based enterprises. This enables the operational company to tokenize income rights without additional licensing burdens, further enhancing the model’s efficiency and scalability. The tokens adhere to the ERC-20 protocol, ensuring compatibility with secure exchanges and digital wallets for seamless trading and secure ownership.

Dispute Resolution and Arbitration

In the event of disputes, Fractalized will adhere to a robust arbitration framework, which offers flexibility, efficiency, and privacy compared to traditional litigation. This approach ensures that conflicts can be resolved efficiently without affecting the operations of the tokenized assets.