bMovies — Compliance Architecture

Compliance architecture

How bMovies handles securities, trading & KYC

bMovies is an autonomous AI film studio where customers commission films and receive 99% of the royalty shares. The platform retains 1% of ticket revenue. This document explains how the platform addresses securities classification, marketplace compliance, and investor protection.

Token classification

Film royalty tokens distribute revenue to holders. Under the SEC/CFTC joint interpretation of March 17, 2026, revenue-sharing tokens are flagged as potential securities. bMovies treats its tokens accordingly and structures its offering to comply.

Component	Classification	Compliance approach
Film royalty tokens	Likely securities (Howey)	Offered under registration exemption (Reg D for US investors)
$bMovies platform share	Revenue-share instrument	KYC-gated, identity-verified buyers only
Commission fees ($0.99–$999)	Service payment	Standard payment processing (Stripe, HandCash)
Ticket revenue	Content purchase	Per-view payment, 1% platform rake disclosed

Marketplace architecture (SEC April 2026 guidance)

On April 13, 2026, the SEC issued staff guidance exempting certain trading user interfaces from broker-dealer registration. bMovies' marketplace is designed to qualify.

bMovies marketplace design

Self-custodial — users connect their own wallets. The platform never holds tokens or private keys.
External settlement — trades execute through the 1sat protocol. bMovies provides the UI, not the matching engine.
Flat fees — per-listing fee, not a percentage of trade value.
No solicitation — no "hot picks," no "trending," no investment recommendations.
Full disclosure — non-registered status, routing, and risks are disclosed to users.

Structural safeguards against market manipulation

The platform is designed so that insider trading and wash trading are architecturally impossible, not just policy-prohibited.

No insider trading — platform employees are contractually and technically prohibited from holding film tokens.
No secret budget manipulation — production spend is recorded on-chain. The platform cannot secretly boost a film's budget to inflate perceived value.
No proprietary trading — the platform's only film revenue is the 1% ticket rake. Fixed, disclosed, automatic. The platform never buys or sells film tokens.
Full on-chain transparency — all wallets, trades, and holdings are publicly verifiable. Anyone can confirm no insider wallet holds film tokens.

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Identity verification & KYC

Every investor on the platform is identity-verified before purchasing shares. bMovies uses Veriff for KYC, supporting document verification and biometric checks across 190+ countries.

$bMovies platform shares — KYC required before purchase
Film token investment — KYC required for investors buying during production
Secondary market trading — KYC required for all marketplace participants
Film commissioning — standard Stripe identity verification for card payments

Corporate structure

Detail	Value
Operator	The Bitcoin Corporation Ltd
Company number	16735102
Jurisdiction	England & Wales
Token standard	BSV-21 (canonical 1sat ordinals)
Custody model	Non-custodial — users hold their own keys
Revenue model	Commission fees (service) + 1% ticket rake (disclosed)

Regulatory roadmap

Phase	Action	Status
Now	KYC-gated platform, on-chain transparency, employee trading ban	Live
Month 1–2	US securities counsel: Reg D structuring + Form D filing	Planned
Month 1–2	UK solicitor: FCA perimeter review + prospectus sign-off	Planned
Month 2–3	Marketplace launch as self-custodial UI (April 2026 exemption)	Planned
Month 6+	Evaluate Reg CF for retail offering (up to $5M/year)	Future
Ongoing	Monitor SEC Token Safe Harbor rulemaking (proposed March 2026)	Watching

Legal documents (live)

Platform token prospectus — risk disclosure, offering summary, bonding curve
Film token risk disclosure — per-film investment risks
Non-custodial disclosure — custody model, key management
Terms of service — platform usage terms
Privacy policy — data handling and GDPR compliance

bMovies builds compliance into its architecture rather than bolting it on. On-chain transparency, KYC-gated access, non-custodial wallets, and structural prohibitions on insider trading provide the audit trail and investor protection that regulators require — while maintaining the speed and openness that makes decentralised film financing possible.

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