Compliance and Legal Framework
NeoMason’s compliance and legal framework is built on three guiding principles:
Local Compliance First — All property-related activities must strictly follow the laws and regulations of the jurisdiction where the assets are located (Dubai).
International Regulatory Alignment — Tokenization and issuance of financial products must comply with global capital market requirements.
Dual-Jurisdiction Execution — A hybrid structure of Dubai local asset compliance + Hong Kong financial compliance establishes a cross-border regulatory moat.
Dual Compliance Architecture: Dubai + Hong Kong
NeoMason adopts a dual-jurisdiction execution model to ensure that operations are legally recognized both locally and internationally.
Dubai: Local Property Compliance and Regulation
Property operations — Acquisition, leasing, custody, and management strictly follow Dubai real estate laws.
Title protection — All property ownership, mortgages, and transfers must be registered with the Dubai Land Department (DLD).
Legal enforceability — In case of disputes or defaults, Dubai’s courts and judicial system provide enforcement.
Regulatory bodies — DLD and RERA (Real Estate Regulatory Agency) oversee compliance and approvals.
Hong Kong: Tokenization and Financial Compliance Hub
Token issuance — All $A_1122, $A_20, and $REY issuance and trading are executed via a licensed Hong Kong entity.
Regulatory advantage — Hong Kong’s HKMA and SFC have established frameworks for RWA and virtual asset regulation, making it Asia’s most advanced pilot jurisdiction.
Cross-border capital compliance — Hong Kong manages international inflows/outflows in accordance with FATF AML/CFT standards.
Investor protection — SFC’s securities framework provides global investors a compliant channel to participate in tokenized real estate products.
Compliance Execution (Dubai ↔ Hong Kong)
Dubai (Local Layer)
Regulatory bodies: DLD, RERA, and DIFC/DFSA (Dubai Financial Services Authority).
Applicable laws:
Property operations under Dubai Real Estate Law and RERA leasing regulations.
Rental receivables collateral registered with DLD to ensure judicial enforceability.
Tokenization activities conducted under DIFC regulatory sandbox.
Key principle: Tokens do not represent legal property title but legally registered receivables rights, forming a “off-chain title + on-chain circulation” model.
Hong Kong (Financial Layer)
Regulatory bodies: SFC (Securities and Futures Commission) and HKMA (Hong Kong Monetary Authority).
Applicable licensing and classification:
VASP License — Mandatory for token custody and trading since 2023.
Token classifications:
$A_1122 / $A_20 tokens → registered as Collective Investment Schemes (CIS) / Tokenized Fund Units.
$REY → classified as a Tokenized Debt Instrument, regulated under Hong Kong’s Securities and Futures Ordinance (SFO).
Stablecoin transactions — Must comply with HKMA’s stablecoin regulatory principles.
Investor protection:
Restricted to qualified/professional investors via KYC/AML.
Secondary trading limited to licensed VASP exchanges or NeoMason’s compliant OTC channels.
Execution Logic
In Dubai — Asset custody, leasing registration, and receivable collateralization ensure legal enforceability.
In Hong Kong — Tokens are issued, registered, and traded under financial market regulations.
Together, this creates a closed regulatory loop: Dubai secures the asset base, Hong Kong secures the financial market entry.
Investor Protection Framework
NeoMason embeds multi-layered protection for investors:
Principal Protection
Real properties and rental cash flows are legally registered and under custody.
Tokens map 1:1 to underlying receivables with legal enforceability.
Yield Protection
Rental income escrowed on-chain and automatically distributed.
Multi-property portfolio + AI hedging + reserve funds create triple-layered protection.
Liquidity Protection
$REY freely tradable in secondary markets.
Collateralized lending provides additional liquidity channels.
Strategic Position of Compliance
For NeoMason, compliance and risk management are not external constraints but core competitive advantages. By combining asset custody, contract security, AI-based hedging, compliance frameworks, and on-chain transparency, NeoMason not only solves efficiency gaps in real estate finance but also builds a trustworthy, resilient, and scalable financial ecosystem.
Executive Takeaway
NeoMason’s Dubai + Hong Kong dual-jurisdiction framework ensures legal enforceability of property assets while providing compliant access to global capital markets. Compliance is embedded as a core design feature, positioning NeoMason as an institutional-grade platform bridging real estate and global finance.
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