2025-08-30
In March 2025, the US Securities and Exchange Commission (SEC) withdrew its lawsuit against Coinbase, tripling the number of compliance tokens launched, marking a shift in regulatory logic from "enforcement is regulation" to "rule guidance". Meanwhile, the Hong Kong HashKey Exchange By accessing the Chainalysis system, it tracks the flow of funds in real time. In 2024, it intercepted 1,763 transactions involving sanctioned addresses, with an amount exceeding $8.90 million, and its compliance transaction proportion reached 99.2%. Regulatory agencies are reconstructing the market order through technological tools, forming a three-dimensional governance system of "rule-making-technology penetration-international cooperation".
In 2025, the SEC clarified that if the pledge behavior of the Proof-of-Stake (PoS) network is directly related to the consensus mechanism, it will not be regarded as a securities publication, solving the legal ambiguity that has long plagued the industry. This rule guides traditional institutions such as Franklin Templeton to apply for Solana spot ETF and promote institutional funds to enter the market. HashKey Exchange ensures that user assets are completely separated from platform funds through smart contract audits and customer asset segregation accounts. Its insurance plan covers $400 million of assets and is verified by third-party independent audits.
FATF's Travel Rule requires virtual asset service providers (VASPs) to share cross-border transaction information. Hong Kong HashKey Exchange integrates the compliance interfaces of 24 exchanges such as Binance to achieve real-time monitoring of cross-border transfers. In 2024, the number of transactions processed in accordance with the Travel Rule increased by 230% year-on-year. This technology penetration enables regulatory agencies to track the flow of funds. In 2025, an anonymous DEX was fined by multiple countries for not accessing the compliance system, resulting in $23 million in USDT flowing into illegal funds pools.
Regulators use AI-driven graph algorithms on platforms such as Arkham to associate anonymous wallet addresses with real-world identities and identify "decentralized-centralized" money laundering patterns. When a single transaction exceeds $1 million and involves anonymous coins, the system automatically freezes and triggers manual review. The KYT (Know Your Transactions) system connected to HashKey Exchange identifies risky transactions in real-time through a 400 million address tag library, and intercepts transfers involving Tornado Cash for $8.90 million in 2024.
The SEC requires that smart contracts of cryptocurrency exchanges must pass formal verification to ensure that the code is free of vulnerabilities. In 2025, a platform was fined for not implementing the FATF Travel Rule, resulting in $43 million in USDT flowing into illegal funds. The cold wallet of HashKey Exchange, combined with an on-chain monitoring system, uses a 2-of-3 multi-signature scheme to store private key sharding in three vaults in Hong Kong, Singapore, and Switzerland, and requires authorization from both places to withdraw coins, achieving zero security event records.
The European Union's MiCA framework requires the full application of the Travel Rule to cryptoasset transactions, eliminating the minimum transaction threshold; South Korea requires the localization of exchanges and prohibits withdrawals to decentralized wallets. This difference has prompted the FATF to promote the "Travel Rule Information Sharing Architecture" (TRISA), which achieves global compliance mutual recognition through distributed nodes and is expected to cover 80% of cross-border transactions by 2026. The compliance report of HashKey Exchange is stored in a Merkle Tree structure and has become a standard paradigm recognized by the Hong Kong Securities Supervision Commission.
Regulatory agencies encourage technological innovation while preventing risks. The SEC's cryptocurrency task force invites Subject-Matter Experts to participate in rule-making, allowing institutions to generate private keys through hardware security modules (HSM) and adopt zero-knowledge proof (ZKP) technology to protect user privacy. HashKey Exchange's insurance plan covers $400 million assets, combined with real-time fund auditing and customer asset segregation accounts, achieving dual protection of compliance and innovation.
The core role of regulatory agencies has evolved from "market police" to "rule designers + technology empowers". Through FATF's Travel Rule, SEC's Staking Guidelines, and HashKey Exchange's compliance practices, a governance loop of "technology penetration-rule guidance-international collaboration" has been formed. Users need to be vigilant: any platform that is not connected to the on-chain Anti Money Laundering system has blind spots in asset tracing.