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Regulatory Position

Regulatory Position

1. Overview#

Gao Internet is a decentralized infrastructure platform designed to support:

  • decentralized identity

  • decentralized applications

  • AI agents

  • decentralized compute and storage

  • Web3 communication systems

The architecture of Gao Internet separates open protocols from service interfaces.

This design ensures that Gao operates primarily as software infrastructure, not as a financial intermediary.

2. Non-Custodial Architecture#

Gao Internet does not custody user assets.

Users interact with Gao using:

  • self-custodial wallets

  • smart accounts

  • decentralized identity systems

  • direct blockchain transactions

Gao entities do not:

  • hold private keys

  • control user wallets

  • custody digital assets

  • execute transactions on behalf of users

All blockchain transactions are executed directly by users through their wallets.

3. Gao Is Not a Custodian#

A financial custodian is typically an entity that:

  • holds user funds

  • controls private keys

  • manages user assets on behalf of users

Gao Internet does none of these.

Users retain full custody of their assets at all times.

4. Gao Is Not a Money Transmitter#

Under U.S. regulations (FinCEN guidance for virtual currency), an entity may be considered a Money Services Business (MSB) if it:

  • accepts and transmits funds

  • controls the transfer of value between parties

Gao Internet does not accept or transmit funds.

Instead:

user wallet → smart contract → user wallet

Transactions occur directly on blockchain networks.

Gao provides software interfaces and infrastructure, not financial intermediation.

5. Gao Is Not a Broker#

A broker typically:

  • facilitates trades for customers

  • holds assets temporarily

  • executes transactions on behalf of users

Gao Internet does not act as a broker.

Users interact directly with smart contracts and decentralized protocols.

6. Infrastructure Provider Model#

Gao Internet operates as an infrastructure software provider, similar to other decentralized infrastructure platforms.

The Gao ecosystem includes:

  • protocol software

  • open-source frameworks

  • developer tools

  • decentralized infrastructure networks

These systems enable third-party developers and users to build applications on top of Gao infrastructure.

7. Service Layer vs Protocol Layer#

The Gao ecosystem contains two distinct layers.

Protocol Layer

Examples include:

  • Gao identity protocol

  • Gao domain registry

  • AI agent runtime

  • decentralized storage

  • DePIN networks

  • smart contracts

These systems operate in a permissionless and decentralized manner.

Service Layer

Certain services are operated by Gao entities.

Examples include:

  • gao.global

  • gao.domains

  • developer portals

  • dashboards

  • hosted APIs

These services provide user interfaces and tools that interact with the underlying protocols.

8. Compliance Approach#

Gao implements compliance measures at the service layer, including:

  • sanctions compliance

  • service access restrictions

  • wallet screening where appropriate

The protocol layer remains open and permissionless.

This approach follows the common model used by many decentralized infrastructure projects.

9. User Responsibility#

Users are responsible for complying with the laws and regulations applicable in their jurisdictions when using decentralized protocols.

10. Future Regulatory Developments#

The digital asset regulatory environment continues to evolve.

Gao Internet will adapt compliance practices where necessary while maintaining the open and decentralized nature of its infrastructure.