Compliance.sol | Contracts

Introduction to the Contract

The Compliance.sol smart contract is a critical component within the Evire ecosystem, specifically designed to manage compliance-related tasks for real-world assets (RWA) tokenization and transactions. This contract ensures that all activities adhere to the regulatory standards and guidelines, which is paramount in sectors dealing with tangible assets.

Context and Importance

Real-world asset management on the blockchain presents unique challenges, particularly around regulatory compliance. The Compliance.sol contract addresses these challenges by embedding compliance checks and processes directly into the smart contract layer. This integration is crucial as it:

• Ensures Legal Compliance: Automates adherence to regulations, reducing the risk of legal infractions.
• Increases Trust: Enhances the credibility of the platform by ensuring all transactions comply with legal standards.
• Streamlines Processes: Reduces manual compliance work, making asset management more efficient and reliable.

Contract Structure

The Compliance.sol contract is structured into several key modules and functions, each serving a specific purpose to maintain compliance and manage assets effectively.

Major Sections and Responsibilities

1. Imports and Interfaces:

   • The contract begins with importing necessary libraries and interfaces that it depends on.
   • Interfaces for KYC (Know Your Customer) and other regulatory checks are imported here.

2. State Variables:

   • The contract defines several state variables to store compliance-related data, such as addresses of regulatory bodies, KYC providers, and compliance status of assets.

3. Modifiers:

   • Modifiers are used to add pre-conditions to functions, ensuring only authorized actions are taken. For example, a modifier might check if a user has passed KYC before allowing them to interact with the contract.

4. Constructor:

   • The constructor sets up initial parameters and ensures the contract is linked to the correct regulatory services.

5. Compliance Functions:

   • addKYCProvider(address provider): Adds a new KYC provider to the list of recognized providers.
   • verifyKYC(address user): Verifies a user's KYC status through the linked provider.
   • checkCompliance(address asset): Checks if a particular asset complies with all regulations.

6. Asset Management Functions:

   • Functions to manage the lifecycle of assets, ensuring they remain compliant throughout their existence on the blockchain.

Essential Functions

• addKYCProvider: This function allows the addition of KYC providers, ensuring the contract can dynamically adapt to new regulatory requirements by recognizing new KYC entities.
• verifyKYC: Essential for verifying if a user has passed KYC checks, which is a fundamental compliance requirement for interacting with many blockchain applications involving RWAs.
• checkCompliance: A critical function to ensure that any asset on the platform meets all necessary regulatory standards before any transaction or tokenization process.

Key Points Summary

• The Compliance.sol contract integrates compliance checks into the Evire ecosystem, ensuring all RWA transactions adhere to regulatory standards.
• It includes mechanisms for managing KYC providers and verifying user compliance status.
• The contract enhances trust, legal compliance, and operational efficiency within the blockchain platform.

To do

• Further development to integrate with multiple regulatory systems worldwide, making the contract more adaptable to global compliance needs.
• Implementing mechanisms for automatic updates to compliance rules based on changing regulations.
• Integrating advanced cryptographic techniques such as zero-knowledge proofs to enhance user privacy while maintaining compliance.

For further exploration of the code, you can access the Compliance.sol GitHub file.

Compliance.sol CODE:

// SPDX-License-Identifier: MIT
pragma solidity ^0.8.0;

import "@openzeppelin/contracts/access/Ownable.sol";
import "@openzeppelin/contracts/utils/Counters.sol";
import "./interfaces/ICompliance.sol";

/**
 * @title Compliance
 * @dev Implements compliance rules for Real World Assets (RWA) on the blockchain
 */
contract Compliance is ICompliance, Ownable {
    using Counters for Counters.Counter;

    struct Rule {
        string name;
        string description;
        bool isActive;
    }

    Counters.Counter private _ruleIdCounter;
    mapping(uint256 => Rule) public rules;
    mapping(address => bool) public whitelistedAddresses;
    mapping(address => mapping(uint256 => bool)) public addressCompliance;

    event RuleAdded(uint256 indexed ruleId, string name);
    event RuleUpdated(uint256 indexed ruleId, string name, bool isActive);
    event AddressWhitelisted(address indexed account);
    event AddressBlacklisted(address indexed account);
    event ComplianceUpdated(address indexed account, uint256 indexed ruleId, bool status);

    constructor() {
        // Initialize with a default rule
        _addRule("KYC", "Know Your Customer verification");
    }

    function addRule(string memory name, string memory description) external onlyOwner {
        _addRule(name, description);
    }

    function _addRule(string memory name, string memory description) internal {
        uint256 ruleId = _ruleIdCounter.current();
        rules[ruleId] = Rule(name, description, true);
        _ruleIdCounter.increment();
        emit RuleAdded(ruleId, name);
    }

    function updateRule(uint256 ruleId, bool isActive) external onlyOwner {
        require(ruleId < _ruleIdCounter.current(), "Rule does not exist");
        rules[ruleId].isActive = isActive;
        emit RuleUpdated(ruleId, rules[ruleId].name, isActive);
    }

    function whitelistAddress(address account) external onlyOwner {
        whitelistedAddresses[account] = true;
        emit AddressWhitelisted(account);
    }

    function blacklistAddress(address account) external onlyOwner {
        whitelistedAddresses[account] = false;
        emit AddressBlacklisted(account);
    }

    function updateAddressCompliance(address account, uint256 ruleId, bool status) external onlyOwner {
        require(ruleId < _ruleIdCounter.current(), "Rule does not exist");
        addressCompliance[account][ruleId] = status;
        emit ComplianceUpdated(account, ruleId, status);
    }

    function isCompliant(address account) public view override returns (bool) {
        if (!whitelistedAddresses[account]) {
            return false;
        }

        for (uint256 i = 0; i < _ruleIdCounter.current(); i++) {
            if (rules[i].isActive && !addressCompliance[account][i]) {
                return false;
            }
        }

        return true;
    }

    function getRuleCount() public view returns (uint256) {
        return _ruleIdCounter.current();
    }
}