New York, Saturday, September 28, 2024 – USDC issuer Circle has launched a new compliance tool designed to assist companies in building decentralized applications that meet strict regulatory requirements.
The tool, named the Compliance Engine, was unveiled by Circle CEO Jeremy Allaire, with a focus on helping developers manage on-chain transactions while adhering to regulations such as the Financial Action Task Force’s (FATF) Travel Rule.
The Compliance Engine offers various features, including transaction screening for risky transfers and a monitoring tool to detect potential high-risk behaviors. A notable feature is the “Travel Rule” service, which assists virtual asset service providers in complying with FATF guidelines on financial surveillance and data validation.
Circle’s website indicates that the tool will offer a one-stop console for integrating APIs, analyzing data, flagging suspicious transactions, and setting up blocklists for wallets linked to known bad actors. Additionally, the tool will report transactions to authorities, ensuring companies maintain transparency and security in their operations.
The Compliance Engine will support multiple blockchains such as Ethereum, Avalanche, Polygon, and Solana, expanding its utility for developers. Circle plans to charge users based on a “pay-as-you-grow” model, making it accessible to companies of different scales.
Circle has been expanding its offerings since its 2018 launch of USDC through a joint venture with Coinbase. With USDC’s market cap at $35 billion, this move reflects Circle’s commitment to combining innovation with regulatory compliance in the evolving crypto landscape.
