Considerations: XPayFi's Global Compliance Architecture

1.Web3 payments and anti-money laundering (AML) compliance

XPayFi's Web3 payment network strictly adheres to international Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) regulations, ensuring that all payments comply with regulatory requirements. With embedded compliance protocols, the system automatically identifies high-risk transactions and triggers additional verification, while supporting localized compliance adaptation in different jurisdictions (e.g., AMLD5 in the EU, FinCEN rules in the US). In addition, the payment data is encrypted with zero-knowledge proof (ZKP) technology, which not only protects user privacy but also meets the needs of regulatory audits to ensure the legitimacy and security of cross-border payments.

2.Consumer Finance and Securities Law Compliance

In the consumer finance business, XPayFi's credit assessment and lending services need to comply with the financial regulatory requirements of each country. For example, the dynamic credit scoring system avoids discriminatory algorithms and follows the European Union's General Data Protection Regulation (GDPR) and California's Consumer Privacy Act (CCPA) to ensure data compliance. For lending products involving securitized assets (such as ABS-NFT), the platform will conduct compliant issuance in accordance with the Reg D exemption of the SEC in the United States or the Prospectus Regulation of the European Union to ensure investor suitability management (such as accredited investor certification), and regularly disclose the risk status of assets to avoid being identified as unregistered securities.

3.RWA exchange adapts to the regulatory sandbox of programmable finance

RWA exchanges strictly follow the compliance framework for asset tokenization, such as adopting the ERC-3643 standard to meet regulatory requirements for security tokens (STOs), and working with licensed custodians to ensure the legal mapping of off-chain assets. Programmable financial protocols embed regulatory logic through "compliant smart contract templates", such as automating the stablecoin rules of the European Union's Digital Finance Package (MiCA) or the US SEC's securities transaction filing requirements. In addition, the platform will actively cooperate with global regulatory sandboxes (e.g., MAS in Singapore and FCA in the UK) to ensure that innovative businesses are tested in a controlled environment and progressively compliant, reducing systemic financial risks.