Frequently Asked Questions

---

 C3 Rules is a dynamic startup company that primarily focuses on regulatory technology (RegTech) and compliance solutions for managing cryptoassets in the banking sector. Our  software solution aligns with the Basel Committee's guidelines on the prudential treatment of exposures to cryptoassets. Our solution includes a robust rules-based engine for classifying various types of cryptoassets, which assists banks in achieving efficient compliance and capital management.  

 C3 Rules addresses the critical need for regulatory technology in the banking sector, offering advanced solutions for managing and classifying cryptoassets in compliance with evolving regulatory standards. The platform simplifies the complex challenges of cryptoasset management, including risk assessment and compliance reporting, thereby enhancing operational efficiency and competitiveness for financial institutions. This is particularly crucial as banks face impending regulatory deadlines and the growing integration of digital assets in the financial market. 

 Our team is composed of subject matter experts in capital markets, blockchain, and rules-based engines. Additionally, our team brings an extensive knowledge and deep network within the emerging security token ecosystem, crucial for banks as they adapt to real-world assets beginning to trade in digital form. 

 Cryptoassets are defined as private digital assets that depend on cryptography and distributed ledger technologies (DLT) or similar technologies. Digital assets are a digital representation of value, which can be used for payment or investment purposes or to access a good or service.

 Group 1 cryptoassets consist of: (a) Group 1a: Tokenized traditional assets that meet the classification conditions. (b) Group 1b: Cryptoassets with effective stabilization mechanisms that meet the classification conditions. 

 Group 2 cryptoassets consist of: (a) Group 2a: Cryptoassets (including tokenized traditional assets, stablecoins and unbacked cryptoassets) that fail to meet the classification conditions, but pass the Group 2a hedging recognition criteria. (b) Group 2b: All other cryptoassets (ie tokenized traditional assets, stablecoins and unbacked cryptoasset that fail to meet the classification conditions and fail the Group 2a hedging recognition criteria).