Regulatory Reporting SDK

The SDK programmatically ingests on-chain and off-chain data relevant to compliance. This includes transaction details (sender, receiver, amount, asset), wallet addresses, smart contract interactions, and KYC/AML statuses. It abstracts the complexity of querying multiple data sources like node RPCs, indexers, and identity providers into a unified interface.

At its core, the SDK embeds logic for specific regulatory frameworks (e.g., FATF Travel Rule, MiCA, IRS Form 8949). It applies jurisdiction-specific transaction reporting rules, threshold checks, and data formatting requirements. This ensures the output complies with the exact schema mandated by the relevant financial authority.

The SDK transforms raw blockchain data into approved reporting formats. This generates structured data files (e.g., JSON, XML, CSV) that align with official schemas like the IVMS 101 data standard for the Travel Rule. It handles field mapping, data normalization, and the creation of audit-ready reports.

Features include encrypted channels for submitting reports to regulators or VASPs (Virtual Asset Service Providers). It manages API authentication, handles submission receipts and statuses, and provides idempotency to prevent duplicate filings. This abstracts the direct integration with often complex regulatory portals.

Implements techniques to share only the required data. This can involve selective disclosure of transaction graphs, the use of zero-knowledge proofs to prove compliance without revealing underlying data, or secure multi-party computation (MPC). It balances regulatory requirements with user privacy.

Maintains an immutable, internal record of all data queries, rule applications, and submission attempts. This creates a verifiable audit trail for internal reviews or regulator examinations. It also supports reconciliation processes to ensure reported data matches internal bookkeeping and on-chain state.

The SDK automates the generation of detailed transaction reports required by regulators like the Financial Crimes Enforcement Network (FinCEN). It can:

• Parse on-chain data to identify reportable events.
• Format data to meet specific regulatory schemas (e.g., MiFID II, FATF Travel Rule).
• Handle submission via approved channels, reducing manual effort and error.

Integrates with DeFi and NFT platforms to calculate capital gains, losses, and income for users. The SDK can:

• Track cost basis across complex DeFi yield farming strategies.
• Generate pre-filled tax forms like the IRS Form 8949 or international equivalents.
• Provide audit trails with cryptographic proof of all calculations.

Enables platforms to perform Anti-Money Laundering (AML) and Know Your Customer (KYC) checks in real-time by connecting to sanctioned lists and identity verification providers. Key functions include:

• Screening wallet addresses against OFAC SDN lists.
• Verifying user identity credentials via integrated providers.
• Creating suspicious activity reports (SARs) for flagged transactions.

Helps custodians and exchanges generate cryptographic Proof of Reserves reports to demonstrate solvency to regulators and users. The SDK facilitates:

• Merkle tree construction of user balances.
• Generation of auditor-verifiable attestations signed by the institution's keys.
• Automated reporting of reserve status to oversight bodies.

Manages the complexity of operating across multiple jurisdictions by mapping transactions to local regulatory requirements. It can:

• Identify the applicable rules based on user geolocation or citizenship.
• Apply different reporting thresholds and formats for the SEC (US), FCA (UK), and MAS (Singapore).
• Handle data localization and privacy law requirements like GDPR.

Specifically aids issuers of stablecoins and electronic money (e-money) tokens in meeting issuer obligations. Core features include:

• Automated reporting on reserve composition and backing.
• Transaction volume and velocity reporting for systemic risk monitoring.
• Integration with central bank digital currency (CBDC) sandboxes and regulatory frameworks.

The SDK provides a unified interface for accessing on-chain and off-chain data required for reports like Travel Rule (FATF-16), MiCA, or Form 1099. It abstracts raw blockchain data (transactions, wallet addresses, token transfers) into structured financial events, handling complexities like internal transactions and smart contract interactions.

Core to the SDK is the mapping of normalized transaction data to specific regulatory schemas (e.g., ISO 20022, local tax forms). It performs real-time validation against schema rules, ensuring fields like beneficiary details, transaction purposes, and asset classifications are correctly populated and formatted before submission.

The SDK integrates with official regulatory gateways and Application Programming Interfaces (APIs), such as those provided by national Financial Intelligence Units (FIUs) or tax authorities. It manages authentication (e.g., OAuth 2.0, API keys), encryption, audit trails, and handles submission receipts or error codes.

To comply with data minimization principles, advanced SDKs may integrate zero-knowledge proofs (ZKPs) or secure multi-party computation (MPC). This allows platforms to prove the validity of a report (e.g., proving a transaction is non-suspicious) without exposing the underlying sensitive customer data to the SDK provider or other parties.

A critical feature is the immutable generation of audit logs for every report created and submitted. This creates a verifiable record for internal compliance reviews and regulator inquiries. The SDK often includes tools for reconciliation, matching submitted reports against original blockchain data to ensure consistency.

The SDK contains a dynamic rule engine that applies jurisdiction-specific logic. It determines reporting thresholds, required data fields, and submission deadlines based on the geolocation of users, the licensing status of the VASP, and the asset type involved (e.g., difference between reporting for BTC vs. a security token).

Anti-Money Laundering (AML) regulations require continuous monitoring of transactions for suspicious patterns. An SDK can integrate with on-chain analytics and risk-scoring engines to flag high-risk addresses, detect mixing services, and identify sanctioned entities in real-time. It enables automated reporting of Suspicious Activity Reports (SARs) to regulators.

Tax authorities require reporting of crypto gains, losses, and income. An SDK can aggregate transaction history, calculate cost basis using methods like FIFO or Specific Identification, and generate standardized tax forms (e.g., IRS Form 1099, ATO schedules). It solves the complexity of tracking across multiple wallets and DeFi protocols for accurate capital gains reporting.

Proving the authenticity of raw blockchain data for regulators. An SDK can generate cryptographic attestations or zero-knowledge proofs that specific transactions or wallet balances existed on-chain at a given block height, without exposing all user data. This creates verifiable, tamper-proof evidence for audits and regulatory inquiries.

Reporting for decentralized protocols presents unique challenges, as there is no central entity. SDKs can be integrated directly into smart contracts or front-ends to aggregate protocol-wide metrics for regulators, such as:

• Total Value Locked (TVL) changes
• Flash loan activity and volumes
• Governance proposal and voting outcomes
• Liquidity pool compositions and yields