Legal & Compliance
The Xcity Project operates across innovative and highly regulated domains — including international land development, token issuance, and DAO-based community governance.
Recognizing the complexity of these fields, Xcity places legal risk management and regulatory compliance at the core of its operations.
Our team actively ensures that the project develops within both international and local legal frameworks, focusing on three key areas: land rights, governance structure, and financial compliance.
1. Land Use Rights & NFT Legal Ownership
Xcity adopts a dual-layer legal framework to ensure global investors’ rights over land use:
- The project’s land is held by a locally registered Argentine company, protected under national law.
Foreign investors sign long-term land-use agreements with this entity, ensuring lawful access and investment security. - Investors receive NFTs as digital certificates, each corresponding to a real-world contract.
NFTs represent usage rights, not direct ownership, allowing compliance with Argentina’s foreign land ownership restrictions. - When NFTs are transferred, the corresponding beneficial ownership in the underlying contract is updated automatically in the system, ensuring that every transaction is legally valid and enforceable.
- If an investor’s cumulative holdings approach the statutory limit, Xcity may use multi-entity structures to maintain compliance.
- In the future, Xcity aims to collaborate with Argentine authorities to digitize official land registries, converting long-term (50+ years) land leases into property-backed NFTs.
2. DAO Governance Legal Framework
While Xcity promotes community-driven governance (DAO), a legal entity is still required to carry real-world responsibilities and rights.
This entity will operate under DAO principles, with token-holder votes codified in its charter as legally binding on its governance decisions.
This structure mirrors the Ethereum Foundation model, combining on-chain autonomy with off-chain legal capacity.
- Xcity seeks partial self-governance rights from the Argentine government, potentially forming an Investor Council to manage local public affairs.
- Experimental community leadership models such as “District Mayor” or “City Manager” elections will be explored under local law.
- A community arbitration mechanism will be established, with escalation to third-party arbitration (e.g., ICC rules) or local courts for major disputes.
- This hybrid structure ensures that Xcity DAO achieves both autonomy and legal protection, enabling decentralized governance to operate securely in the real world.
3. Anti-Money Laundering, Tax & Regulatory Integrity
Xcity enforces strict AML procedures and follows FATF “Travel Rule” requirements for fund tracing and large-transaction verification.
Given Argentina’s foreign exchange controls, Xcity operates under Special Economic Zone (SEZ) policies, enabling free fund inflow/outflow through dedicated trade accounts.
To minimize double taxation, the project will use intermediate entities in favorable tax jurisdictions while maintaining full disclosure and compliance with both local and international standards.
All investor agreements — including land, token, or immigration contracts — will comply with Argentine law and international conventions such as the ICSID Treaty on Investment Arbitration.
Xcity is committed to building a transparent, compliant, and trustworthy global project that protects investors’ rights while fostering innovation.
Disclaimer
This document is for informational purposes only and does not constitute legal, tax, financial, or investment advice.
All data, forecasts, and information are based on sources believed to be reliable at the time of publication but may change without notice.
Investment opportunities and immigration programs described herein are subject to final government approval and regulatory interpretation.
Readers should conduct their own due diligence and consult qualified legal, tax, and financial professionals before making any decisions.
Neither the authors nor Xcity make any warranties, express or implied, regarding the accuracy or completeness of the information contained herein, and shall not be liable for any loss arising from reliance on this document.
By using this material, the reader acknowledges and accepts that Xcity assumes no liability for any direct or indirect consequences of its use.