USDC issuer Circle launches compliance engine for programmable wallets, ZachXBT reacts
- Circle announced the launch of its latest regulatory product, Compliance Engine for Programmable Wallets.
- The product helps businesses meet regulatory requirements through automated checks.
- Circle faced criticism from "crypto detective" ZachXBT and community members concerning their recovery procedures.
USDC issuer Circle launched a new product on Tuesday, Compliance Engine for Programmable Wallets. The product is designed to help companies build products on-chain while meeting regulatory criteria in their respective regions.
Circle adds new product to aid regulatory compliance
In a press release on Tuesday, Circle announced the launch of Compliance Engine, a product aimed at helping companies build on-chain without facing the rigors of regulation.
The announcement states that this new engine will help businesses protect users and "meet regulatory requirements with customizable, automated compliance checks."
The product has three major components: transaction screening, transaction monitoring, and travel rules. Each function is said to help businesses adapt to changing regulatory requirements.
Circle is the issuer of the second largest stablecoin, USDC, which has a market cap of $35.9 billion and a daily trading volume of $6 billion, according to CoinGecko data.
Circle CEO Jeremy Allaire also posted that the Compliance Engine is the company's way of sharing its "compliance capabilities" with teams and businesses that intend to bundle products on-chain.
However, the product's launch has met mixed reaction among crypto community members, with ZachXBT criticizing the company's alleged failure to challenge bad actors.
ZachXBT alleges that Circle failed to act against bad actors who robbed users and used USDC Wallets to transact funds. This includes a 2023 supply chain attack on the Ledger connect kit where several users’ funds were stolen. ZachXBT claims that Circle did nothing despite having enough time to blacklist suspected accounts.
He also points out the company's failure to act after Avi exploited Mango and moved the funds through USDC.
You should worry about your own compliance capabilities before offering a product…
— ZachXBT (@zachxbt) September 24, 2024
I can literally go on-chain and flag a DPRK IT worker receiving USDC payments from a Circle account every month but it’s pointless bc I know your team will not do anything. pic.twitter.com/2zCPb5occ8
"If Circle has such robust compliance, how was Avi able to deposit $32.5 million in two txns to his Circle account from the Mango exploit with zero obfuscation without triggering anything?" ZachXBT replied to Jeremy Allaire's X post.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
