Nxtblg: Yeah you could set this up with Stellar.
Thanks for the answer.
The crowdfund is limited to only 50 people?
Yes, any crowdfund would have to be limited to 50 people. The link I supplied in my question gives a plain-language version of the part of the securities laws in my jurisdiction that allow for a "private-issuer exemption": an exemption from filling out a lot of paperwork & shelling out a lot of fees to one or more lawyers (if you get my drift.) As the link explained, there are also special restrictions on selling the shares too: you need the assent of either the board of directors or the majority of shareholders.
I could throw together something like this in the Horizon system or the system of its parent, Nxt. But the trouble is, the nodes do not enforce those restrictions automatically. That's no real biggie, legally, as I could throw together a special restricted wallet that would block any sell order from a stakeholder and throw together a "sign-your-life-away" document in which the crowdfunders and the crowdfundee agree in writing to only use the restricted "crowdfund wallet" to buy and sell any crowfund shares. Heck, I could even use Factom to blockchain-verify that each participant did sign his/her life away. This is "legally elegant" in that my arse would be covered.
But it's not technologically elegant, which means that my case would be less strong if a securities-regulator enforcement agent came a'callin'. "So what you have here is essentially an honour system, backed up by those signed pledges not to use the standard wallet interface." Any regulator worth his/her salt would immediately see "honour system" as meaning "loophole-ridden", and start drawing up a little list of additional paperwork requirements to keep a lid on those loopholes (if you get my drift.)
Contrast that with a build-in enforcer, one that would automatically reject an illicit transaction as if it were a double-spend. Then, the regulator would prepare a different list, namely: "What tests can we conduct to verify that an illegal transaction would in fact be rejected by the system?" Once the system passes those tests, the regulator would be assured that the paperwork is built into the system - i.e., that there's no regulatory paperwork needed: consequently, there's no need to alter or tighten up the private-issuer exemption.
Just take a moment and think of what the latter case entails. Imagine a system of crowdfunding for Canada that truthfully promises this:
Now you can crowdfund with no worries about the securities laws! With the X crowdfunding platform, you automatically heed the securities laws with a convenient, no-paperwork crowdfunding venue that eliminates the hassles of a paper-bound approach. You never have to worry about breaking the law because compliance is automatically enforced through the blockchain. So you can crowdfund for any micro-business with no worries about being hauled in by a regulator. Just use it as designed, and you're always on the right side of the law. And X's convenient user-friendly technology means you can start crowdfunding in minutes!
That's the point behind my above wall-of-text. If you know any Canadians, you'll understand
