Scholarlink

This paper presents the Compliance On-Chain Framework (CCF), a hybrid compliance solution designed to fulfill Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) requirements in decentralized finance (DeFi) while upholding privacy, security, and decentralization principles. The framework leverages decentralized identity ERC-734/ERC-735 standards, to integrate off-chain trusted data providers (TDPs) and on-chain mechanisms for issuing verifiable credentials. A key innovation of the CCF is its emphasis on continuous compliance through automated validity checks and real-time updates, addressing critical gaps in current compliance approaches. The framework’s user-centric design empowers users to demonstrate regulatory adherence without compromising decentralization. Initial testing on an EVM-compatible testnet validates the framework's feasibility, scalability, and potential for broader real-world adoption, paving the way for innovative compliance solutions in the DeFi ecosystem.

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Compliance On-Chain Framework for Decentralized Finance to Meet AML/CTF Requirements While Preserving Privacy, Security and Decentralization

  • 会议论文

  • 发表日期：

    2025年

查看全文
  • Gintarė Košubienė,
  • Saulius Masteika

摘要

This paper presents the Compliance On-Chain Framework (CCF), a hybrid compliance solution designed to fulfill Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) requirements in decentralized finance (DeFi) while upholding privacy, security, and decentralization principles. The framework leverages decentralized identity ERC-734/ERC-735 standards, to integrate off-chain trusted data providers (TDPs) and on-chain mechanisms for issuing verifiable credentials. A key innovation of the CCF is its emphasis on continuous compliance through automated validity checks and real-time updates, addressing critical gaps in current compliance approaches. The framework’s user-centric design empowers users to demonstrate regulatory adherence without compromising decentralization. Initial testing on an EVM-compatible testnet validates the framework's feasibility, scalability, and potential for broader real-world adoption, paving the way for innovative compliance solutions in the DeFi ecosystem.