Orca CLO Calls for Platforms to Remain Open, Compliance Burden on Token Issuers

According to Christopher Montagnino, Chief Legal Officer of Orca, speaking at a National Assembly policy seminar in Seoul on June 22, regulators should place compliance and investor verification obligations on token issuers rather than on trading platforms.

Montagnino outlined a framework where platforms remain neutral and open-access, while compliance is enforced at the token level through smart contracts. He cited three real-world examples on Solana: Figure Technologies' PRIME token (enabling wider access to institutional credit yields), Backpack Exchange's SPCX (providing SpaceX equity exposure with 24/7 trading), and Streamex's GLDY (a regulated securities token restricting access to qualified investors through on-chain verification). The approach eliminates the need for platforms to act as gatekeepers while maintaining regulatory compliance.