Wee Siang Lee, CAMS-RM, CAMS, CRC, CISC, CAFCA, CGSS

The August 2022 OFAC sanctions against decentralized mixing protocol Tornado Cash was a watershed moment in a debate that has been going on for the last several years - what should financial crime compliance look like in the age of DeFi? How can we ensure that lawful users are able to transact in a secure and private manner while stopping illicit actors like North Korea from laundering billions in stolen funds? We have always believed that the answer is to leverage the technology itself rather than overregulate a nascent, innovative space. Today, TRM Labs is proud to announce a partnership with Predicate a decentralized transaction prerequisites protocol, to create the first-ever decentralized policy infrastructure. This product sets a new standard that empowers developers to integrate compliance and risk management directly into smart contracts, building on prior industry research defining DeFi as critical infrastructure. The partnership between TRM and Predicate allows crypto businesses and developers to seamlessly leverage TRM’s industry leading attribution and risk scoring framework for transaction prerequisites within various components of their decentralized application stack — such as smart contracts, solver networks, and routers. TRM will ensure ongoing access and support to identify transactions associated with high-risk activities such as terrorist financing, human trafficking, stolen funds, and child sexual abuse material. Predicate will power the pre-transaction infrastructure, tooling, and network of distributed operators necessary for developers to easily integrate TRM’s risk scores for any on-chain application. Together, Predicate and TRM enable more expressive transactions and controls through an open, verifiable, and ownable network. Some thoughts from today’s annnouncement: At Predicate, we believe that by streamlining transaction prerequisites we can create better transaction execution patterns,” said Nikhil Raghuveera, co-founder and CEO of Predicate. “Our mission is to enable seamless experiences for developers through a library of pre-transaction requirements that are easy to integrate and enforced in a decentralized and trust-minimized fashion. Through our work with TRM, we are able to offer the sophisticated policy infrastructure necessary for organizations to meet their regulatory and business requirements as they scale.” “The true promise of blockchain technology is DeFi — financial services offered without a traditional intermediary delivered via a smart contract. As we move closer to a truly decentralized world, it is critical that we build policy, regulatory, and compliance infrastructure that meets that moment,” said TRM’s Global Head of Policy, Ari Redbord. This partnership represents an exciting step forward in the ability for developers to build compliant decentralized services.” I could not be more excited to work with Nikhil Raghuveera and the team at Predicate to build a safer financial system.

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🚨 Crypto Regulation in Singapore: A Facilitative Blueprint As crypto adoption accelerates, Singapore emerges with a balanced regulatory approach—outlined in The Handbook of Digital Currency. 🔍 Key Takeaways: ✅ Targeted Regulation Singapore prioritizes Anti-Money Laundering & Counter-Terrorism Financing (AML/CTF), without stifling innovation. It regulates intermediaries while excluding users and miners from excessive compliance burdens. ✅ Self-Regulatory Framework Partnerships with industry bodies (like ACCESS) enable collaborative rule-making, enhancing trust and adaptability. ✅ International Harmonization Singapore advocates for cross-border cooperation to handle crypto’s global, decentralized nature. ✅ Legal Reform Needed Current laws lack clarity on theft or misappropriation of crypto. Reform is vital for property rights, investor confidence, and commercial certainty. 📌 The “facilitative model” champions innovation and accountability—positioning Singapore as a global crypto and fintech hub. #CryptoLaw #BlockchainRegulation #SingaporeFintech #Web3Policy #DigitalAssets #CryptoCompliance #AML #CTF #CryptoInnovation #BitvirajInsights #SelfRegulation #CryptoLawReform

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