Compliance modules enforce on-chain rules for your tokenized assets. Learn about available modules and how to configure them during asset creation.

Compliance modules are on-chain rules that automatically enforce regulatory and business requirements for your tokenized assets. The verification system enables trusted entities to issue attestations that prove compliance with these requirements.

Compliance Modules

Compliance modules are smart contracts that validate every transaction against your business rules.

When to configure compliance modules

You select compliance modules during asset creation using the Asset Designer wizard.

Some modules can be added or modified after deployment if you have the governance role on the asset. However, it's best to configure compliance requirements upfront to avoid disrupting existing holders.

Compliance management integrated into the operator dashboard

Available compliance modules

Module	Description	Validates
Identity verification	Requires verified OnchainID with valid verifications (KYC, accreditation)	Both sender and recipient
Country allow list	Only wallets from specified countries can hold the asset	Recipient
Country block list	Wallets from blocked countries cannot hold the asset	Recipient
Address block list	Explicitly block specific wallet addresses	Both
Investor count limit	Caps maximum unique holders (e.g., Reg D 99 investor limit)	Transfers increasing holder count
Time lock	Enforces minimum holding period before transfers	Sender
Transfer approval	Requires manual approval before each transfer executes	Each transfer
Collateral requirement	Requires sufficient collateral backing before minting new units	Minting operations only

When configuring address-based modules (identity allow/block lists, address block lists, and trusted issuers), you can select from existing identities or enter custom addresses manually.

How modules work together

When multiple compliance modules are enabled, all modules must pass for a transaction to succeed. If any module rejects the transaction, it fails with an error indicating which compliance check was not met.

For example, if you enable both identity verification and country allow list:

The recipient must have a verified OnchainID
The recipient's identity must be from an allowed country
Both conditions must be true for the transfer to proceed

Verification System

Understanding verifications

What are verifications?

Verifications are on-chain attestations that confirm specific information about:

Investors - Identity, accreditation, eligibility
Issuers - Regulatory compliance, licensing, jurisdiction
Assets - Collateral backing, pricing, classification
Contracts - Smart contract identity verification

Verification components

Each verification contains:

Topic - What is being verified (e.g., KYC, Accreditation)
Scheme - The signature scheme used (e.g., ECDSA or CONTRACT)
Issuer - Who verified the information
Signature - The cryptographic signature of the verification
Data - Verification details (often hashed for privacy)
URI - Optional URI reference (e.g., IPFS hash for additional data)

Important: Verifications do not have expiration dates by default. Instead, issuers can manually revoke verifications when they are no longer valid.

Issuer X may be trusted by Organization A for KYC verifications
Issuer X may NOT be trusted by Organization B for the same topic
Each organization maintains its own list of trusted issuers per verification topic

Two types of verification issuers

Trusted issuers:

Can add verifications directly to user identities on-chain
Their verifications are automatically recognized by compliance modules
Require explicit configuration by platform administrators

Regular issuers:

Can create verifications but cannot add them directly to identities
Must provide verifications off-chain to users
Users decide whether to add these verifications to their own identities
Verifications are NOT automatically recognized for compliance

Verification topics define available compliance checks

Available verification topics

Investor-level verification topics

Topic	Purpose	Common Issuers	Regulatory Context
Know Your Customer (KYC)	Identity verification (passport, government ID, residency)	Compliance officers, KYC providers	Required for AML/CTF compliance and basic onboarding
Anti-Money Laundering (AML)	AML/CTF screening (sanctions lists, PEP screening, adverse media)	Compliance officers, banks	Usually paired with KYC verification
Qualified Institutional Investor (QII)	QII status under securities regulations	Banks, insurers, pension funds	US Investment Company Act, Japanese FIEA
Professional Investor	Professional/qualified investor criteria	Regional regulators, professional bodies	EU MiFID II, Hong Kong SFO, Singapore SFA
Accredited Investor	Accredited investor qualification (income, net worth, institutional status)	Lawyers, accountants, banks	US SEC Regulation D, Rule 501
Accredited Investor (Verified)	Document-verified accredited status with supporting documentation	Licensed professionals	US Regulation D 506(c) offerings
Regulation S	Non-US person status as defined in Regulation S	Compliance officers	Required for US Securities Act Reg S exemptions

Asset-level verification topics

Topic	Purpose	Common Issuers	Examples
Collateral	Asset backing verification	Custodians, collateral agents	Physical assets, cash reserves, securities
Unique Identifier	Official asset identification	Numbering agencies, operators	ISIN for securities, Real Estate Number (REN)
Classification	Asset class and category	Operators, regulators	COMMON_EQUITY, GROWTH_EQUITY, RESIDENTIAL, MIXED_USE
Base Price	Asset valuation	Price oracles, valuers	Market price, appraisal value
Issuer	Legal issuer of the asset	Legal counsel	Corresponds to on-chain TokenIssuer identity
Location	Asset location data (for real estate)	Asset operators, registrars	City, district code, area ID (privacy-preserving)

Issuer-level verification topics

Topic	Purpose	Common Issuers	Regulatory Context
Prospectus Filed	Valid prospectus filed or published	Regulatory authorities	Required under securities/markets law unless exempt
Prospectus Exempt	Exemption from prospectus requirements	Legal counsel, regulators	Small offers, private placements, MiCA de-minimis
Licensed	Regulatory license or authorization held	Licensing authorities	MiCA CASP license, SEC registration, EU AIFM
Reporting Compliant	Ongoing disclosure and reporting compliance	Auditors, regulatory authorities	Periodic financial reports, annual filings
Jurisdiction	Issuer's legal jurisdiction	Legal counsel, regulatory authorities	Legal domicile and regulatory oversight