just wondering if anyone here knows if it is possible to create a token contract where by the token transfers have to be approved by a third party.
Ethereum Stack Exchange is a question and answer site for users of Ethereum, the decentralized application platform and smart contract enabled blockchain. It only takes a minute to sign up.Sign up to join this community
Your token can do anything you code it to do, so you could make a token whose transfers require approval. Some contracts have implemented "KYC" restrictions where they whitelist addresses that are allowed to receive tokens.
However, to make enforcement work reliably you would also need to block sending tokens to contracts, unless your third party had checked and approved them; Otherwise people could work around your restrictions by transferring the money to a proxy contract, then having that contract manage transfers; As far as your token contract was aware, the tokens would be owned by the proxy contract, and only transferred with its approval, but in practice the proxy contract could allow transfers without its approval.