What I suggested was tournaments and sit and go's. No cash game.
All players must be invited for entry. Buy-in will have a small fee for the host-site and maybe for the person arranging the tournament. Fee for site is fixed (either 100% fixed amount or percantage). I didn't think much about the fee for host-person, so I have no answer as to what that would be.
It would also be possible to host freerolls, also with invitation. Host will pay a small fee for this tournament.
For both freerolls and buy-in tournaments would be the option for participating players to add to the prizepool by donating. No fee on this.

In my opinion, this should eliminate cheating. There may be a few things that will enable cheat, but I believe this is a strong starting point regardless of what site it is hosted on. Still has to be a trusted site though.