Chainlink Compliance Standard

The global financial system requires adherence to various forms of compliance within different geographic regions in order to conduct transactions, such as KYC/AML or transaction rate limits. These compliance requirements are implemented to protect against fraud or illicit activity and ensure specific jurisdictional or internal business requirements are satisfied. As a result, token issuers, financial institutions, and DeFi protocols need a way to embed compliance into their tokenized assets and blockchain applications in a manner that’s efficient, reliable, and specific to their unique needs.

The Chainlink compliance standard, powered by the Onchain Compliance Protocol (OCP) an open, protocol-level specification defining how to utilize DONs to define and store compliance data onchain and utilize identity data and policies in smart contracts. OCP allows existing identity systems (e.g., GLEIF’s vLEI, ERC-3643) to be integrated with onchain infrastructure via the Cross-Chain Identity (CCID) framework, with policies enforced onchain and offchain using the Policy Manager. Compliance policies can be embedded directly within smart contracts and any token type, credentials can be verified without exposing personal data, and identity attestations can be coordinated across blockchains and jurisdictions. This is enabled by CCT and its compliance extension, which functions as a connector between smart contracts and CCID and the Policy Manager.