> ## Documentation Index
> Fetch the complete documentation index at: https://docs.tiprotocol.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Regulation and user protection

> Ti was designed in line with what regulation requires. It does not take custody of user assets, states clearly what its AI does, and centers its support on stablecoins from regulated issuers.

As stablecoins have come under regulation, the services built on them are now judged by the same standards. From the start, Ti was designed in line with what regulation requires. It does not take custody of user assets, it states clearly what its AI does, and its support centers on stablecoins from regulated issuers.

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## 1. Non-custodial model

Ti does not hold user assets. Before and after a transaction, users' stablecoins sit in their own wallets; only while a transaction executes do they pass through the router, bridge and destination receiver contracts, on the terms the user signed. Swaps and transfers start only from a transaction the user signs. Ti never receives or stores a user's private key or seed phrase, and it does not deposit or lend user assets anywhere. Under this model, user assets are not tied up in Ti even if the Ti service stops. All users need to access their assets at any time is their wallet.

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## 2. The stablecoin regulatory landscape

Stablecoin regulation in major markets has been put in place step by step since 2023.

Stablecoin regulation · 2023–2027When stablecoin rules arrived in major marketsPastAhead or pendingToday<table><caption>Stablecoin regulation timeline</caption><thead><tr><th>Date</th><th>Jurisdiction</th><th>Event</th></tr></thead><tbody><tr><td>2023-06-01</td><td>Japan</td><td>Amended Payment Services Act in force</td></tr><tr><td>2024-06-30</td><td>European Union</td><td>MiCA stablecoin rules apply</td></tr><tr><td>2025-07-18</td><td>United States</td><td>GENIUS Act signed</td></tr><tr><td>2025-08-01</td><td>Hong Kong</td><td>Stablecoins Ordinance in force</td></tr><tr><td>2025-10-27</td><td>Japan</td><td>JPYC launches</td></tr><tr><td>2026-04-10</td><td>Hong Kong</td><td>First issuer licences</td></tr><tr><td>2026-10-21</td><td>United States</td><td>OCC finalizes rules</td></tr><tr><td>2027-01-18</td><td>United States</td><td>Takes effect by</td></tr><tr><td>—</td><td>South Korea</td><td>Digital Asset Basic Act under discussion</td></tr></tbody></table>Source: the table in Section 15.2 and its footnotes — GENIUS Act and the OCC, MiCA (EU 2023/1114), Japan FSA, The Block (JPYC), HKMA, CoinDesk (South Korea)View figure full size

**Figure 36.** Stablecoin rules have taken effect market by market since Japan's in 2023; the U.S. GENIUS Act takes effect by January 18, 2027 at the latest, and South Korea has yet to legislate.

| Jurisdiction | Framework | Timing | Key provisions |
| - | - | - | - |
| United States | GENIUS Act | Signed July 18, 2025. Takes effect 120 days after final rules are issued or on January 18, 2027, whichever is earlier | 100% reserves for payment stablecoins, ban on paying interest to holders, issuer licensing. The OCC finalized its implementing rules on October 21, 2026<sup>[4](https://docs.tiprotocol.io/appendix/references.md#ref-4)</sup> |
| European Union | MiCA | Stablecoin rules applied from June 30, 2024 | E-money token issuers must be credit institutions or electronic money institutions, redemption at par, ban on interest<sup>[5](https://docs.tiprotocol.io/appendix/references.md#ref-5)</sup> |
| Japan | Amended Payment Services Act | In force June 1, 2023 | Only banks, funds transfer service providers and trust companies may issue. JPYC launched under this framework in October 2025<sup>[6](https://docs.tiprotocol.io/appendix/references.md#ref-6)</sup><sup>,[7](https://docs.tiprotocol.io/appendix/references.md#ref-7)</sup> |
| Hong Kong | Stablecoins Ordinance | In force August 1, 2025 | Licensing regime for issuers. First licenses granted in April 2026<sup>[8](https://docs.tiprotocol.io/appendix/references.md#ref-8)</sup> |
| South Korea | Digital Asset Basic Act (under discussion) | Not yet enacted as of November 2026 | Debate continues over who may issue Korean won stablecoins<sup>[39](https://docs.tiprotocol.io/appendix/references.md#ref-39)</sup> |

Among the stablecoins Ti supports, USDC, EURC and JPYC come from issuers regulated under these frameworks. When Ti adds a stablecoin, it reviews the issuer's regulatory status, reserve disclosures and redemption structure, and it adjusts the scope of support as the regulatory environment changes. Each stablecoin issuer can freeze its own token at specific addresses. This power belongs to the issuer, and Ti cannot change it.

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## 3. AI disclosure

Every Ti AI answer is labeled as generated by AI. The “AI usage notice” explains that answers can be wrong or incomplete, that the same question can get a different answer depending on the course of the conversation, and that answers are not investment advice. Ti also discloses the model that generates the answers (Anthropic Claude) and the fact that questions and conversations are sent to the AI provider. When a service outage causes a prepared default message to be shown, that message is labeled as not being an AI answer.

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## 4. Privacy

Ti handles only the minimum information the service needs. Users sign in with a wallet signature, so Ti does not collect names, email addresses or phone numbers. To provide the service, Ti uses the user's wallet address and public blockchain records, conversations with Ti AI, and mission participation records. Conversations are stored for a defined retention period, and reports users submit about answers are stored for review. Ti advises users not to enter sensitive information such as seed phrases, private keys, passwords or national ID numbers into Ti AI. The details are governed by the Privacy Policy.

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## 5. Service restrictions and legal requests

Ti may restrict some or all of the service in certain countries or regions in accordance with applicable laws. When Ti receives a request relating to a sanctioned party, or a legitimate request from a court or law enforcement agency, it responds at the service level. For TIP and the vesting contracts, it uses the compliance freeze within the limits set out in [Section 14.6](https://docs.tiprotocol.io/security/security.md#6-operating-the-compliance-freeze). Every on-chain action records a reason code and the hash of the supporting document.

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## 6. The legal nature of TIP

TIP is a utility token built for use in the Ti Protocol ecosystem. It does not represent equity, debt, a profit-sharing right or any claim against any company. Ti promises holders no interest or dividends, and there is no mechanism that distributes protocol revenue to holders. The sale and allocation of TIP follow the laws of each participant's jurisdiction, and residents of some jurisdictions cannot take part in the sale.


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