0xd0fe2019…4331sent to0xb024ac5a…a016·#22,647,286·view on Etherscan
# Update Approved Jurisdictions to Include Cayman Islands (version 1.40 of Adopted Guidance)
# Background
As the M0 network reaches $250M in aggregate supply, ecosystem actors are interested in seeing the broadening of collateral structures. In order to facilitate the build out of additional SPV and collateral structures in the future, this proposal recommends the addition of The Cayman Islands as an approved jurisdiction.
# Proposed Changes
## Change #1
### Section: 3.4. Approved Jurisdictions
**Old**: Given the current technological conditions, and the nature of the Eligible Collateral proposed by the Adopted Guidance, any form of collateral shall only be recognized as Eligible Collateral by the Validator if the SPV is located in one of the jurisdictions listed below:
- Luxembourg
**New**: Given the current technological conditions, and the nature of the Eligible Collateral proposed by the Adopted Guidance, any form of collateral shall only be recognized as Eligible Collateral by the Validator if the SPV is located in one of the jurisdictions listed below:
- Luxembourg
- The Cayman Islands
## Change #2
### Section: 3.4.13. Audit
**Old**: The jurisdiction requires the mandatory (by law) audit of the annual financial statements of the legal entity.
**New**: The jurisdiction requires the mandatory (by law) audit of the annual financial statements of the legal entity.
Where such audits are not required by law in the jurisdiction, the audit obligation must be embedded contractually in the entity’s governing documents or operator agreements.
## Change #3
### Section: Throughout
**Old**: M^0
**New**: M0
# Ratification of the Present Proposal
The execution of the present proposal shall follow the streamlined Adopted Guidance change process. In such a case - and assuming no other conflicting changes to the Adopted Guidance are proposed in this cycle, the changes mentioned above will have resulted in the proposed version 1.40 of the Adopted Guidance document, as found in the link below. Upon approval of the present proposal, the ratified version of the Adopted Guidance will be updated on https://docs.m0.org, and communicated to ecosystem actors.
[https://github.com/m0-foundation/adopted-guidance/blob/main/m0_adopted_guidance_v1.40.pdf](https://github.com/m0-foundation/adopted-guidance/blob/main/m0_adopted_guidance_v1.40.pdf)
New document hash `cb4e866617b20748584dbc25a7339064f2f926192d6da49cf94e257ee55bc9f1`.
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