Programmable Compliance for Digital Money and AssetsA RegTech Framework for Privacy, Resilience, and Regulatory Readiness
Executive Summary
This whitepaper by the Stablecoin Standard (SCS) explores the evolving RegTech landscape supporting financial crime prevention in blockchain-based financial systems. It highlights how emerging technologies—AI, APIs, digital identity tools, and blockchain analytics—are enabling real-time, privacy-aware compliance.
Traditional compliance systems are arguably misaligned with high-velocity digital finance. Fragmented tools and overreliance on personal data impede both effectiveness and trust. In response, many RegTech vendors are building modular, API-native and blockchain architectures that support dynamic oversight while limiting data exposure.
SCS introduces a functional taxonomy—Prevent, Detect, Trace, Protect—to categorize RegTech solutions across the financial crime lifecycle. The research shows growing momentum, but limited convergence: no vendor yet offers a full-stack compliance solution, and AML tools are often conflated with cybersecurity infrastructure, despite serving distinct functions.
The paper advocates for a shift to embedded compliance architectures that are modular, interoperable, and programmable. It also advocates that regulations should evolve to recognize blockchain-native tools that support fraud prevention without centralizing personal data—enhancing financial integrity, privacy, and regulatory efficiency.
Key Takeaways:
RegTech is enabling continuous, risk-based compliance aligned with blockchain transparency.
AML/KYC and cybersecurity must be treated as complementary but distinct controls.
Compliance architecture should prioritize interoperability, transparency, and data minimization.
Public-private coordination is essential to modernize policy frameworks and ensure regulatory readiness.
This paper is not a vendor ranking or comprehensive market scan. It is a strategic blueprint to inform regulators, technologists, and institutions shaping the next generation of digital compliance systems.
About Stablecoin Standard
Stablecoin Standard (SCS) is the industry body focused on setting operational, transparency, and product-related standards for stablecoins. The SCS plans to achieve industry-wide standards by sharing international best practices, business development use cases, forming industry-led working groups defining what a high-quality liquid stablecoin should look like, and engaging with policymakers domestically & internationally. The SCS ecosystem consists of more than 35 advisory board members, industry partners and issuers that offer digital currencies in global jurisdictions such as the US, EU, Singapore, Australia, and Turkey - among others.
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Media Contact: stablecoinstandard@mgroupsc.com
