RWA Exclusive Token Standards: Analysis of the Compliance Characteristics and Application Scenarios of ERC-3643

In the process of integrating blockchain technology with the TradFi market, RWA has become one of the most transformative innovation areas. However, constrained by the lack of regulatory compliance frameworks and industry standards, the tokenization of Real-World Assets (RWA) has long faced developmental bottlenecks. Against this backdrop, the ERC-3643 standard has emerged as the first Ethereum token standard specifically designed for regulated assets.

Unlike the generic ERC-20 standard, ERC-3643 constructs a technical architecture that is both compliant with securities regulations and retains the efficiency advantages of Blockchain through embedded identity verification and an automated compliance engine, addressing the core contradiction of traditional financial assets on-chain. In this article, the Beosin security team will analyze the ERC-3643 token standards, compliance features, and application scenarios.

Analysis of ERC-3643 token standards

1.Token Standards

ERC-3643 addresses the core demands of compliant asset tokenization through a modular architecture. This decoupled design enables the separation of business logic, providing the system with high configurability. The most critical aspect is the separation of the identity registry and compliance contracts, which allows for flexible adjustments to compliance rules based on jurisdictional requirements without changing the core logic of the token. When a user initiates a transfer, the token contract automatically queries the compliance contract, which cross-checks the identity declarations in the identity registry, forming an automated compliance decision chain.

The technical architecture of ERC-3643 adopts a dual-layer permission control, enhancing the functionality of ERC-20 while adding two key compliance layers. The first layer focuses on verifying the identity and qualifications of the transaction recipient, utilizing the ERC-734/735 standards to validate the existence of identity claims and the certification status of trustworthy issuers; the second layer imposes global rules constraints on the tokens themselves, such as setting daily transfer limits and maximum holder counts. This layered design ensures continuous verification of investors' qualifications while providing issuers with flexible tools for regulatory rule execution, meeting the multidimensional compliance needs of security tokens. The core components of its architecture are as follows:

●Identity Registry (: As the core module connecting on-chain addresses with on-chain identities (ONCHAINID), it ensures that the identities of all Token holders are verifiable and compliant. Its core functions include registerIdentity ), updateIdentity (, updateCountry ), batchRegisterIdentity (, isVerified ). The verification function isVerified (, when called, will interact with the Claim Topics Registry (to check declaration types) and the Trusted Issuers Registry (to check declaration issuers), returning true if passed.

●Compliance API: A dynamic compliance rules engine used to enforce global compliance policies (such as holder limits, cross-border restrictions), associated with token contracts to intercept illegal transactions in real-time. Its core functions include bindToken)(, unbindToken)(, transferred)(, created)(, destroyed)(, and canTransfer)(, supporting modular replacement of compliance logic, allowing issuers to dynamically upgrade rules (such as adding AML strategies) without affecting the token contract.

●可信发行人注册表)Trusted Issuers Registry(: Used to manage trusted entities authorized to issue statements.

●Token contract: Expands compliance control functions based on ERC-20 compatibility, with main functions including conditional transfers, token freezing and unfreezing, contract lifecycle control, and token metadata management.

● Claim Topics Registry ): Defines the types of claims required for tokens (such as KYC levels, investor qualifications) as a "checklist" for verification.

(# 2. Identity Verification and Compliance Execution Mechanism

The verification mechanism requires each Token holder to complete identity verification through a trusted issuer in order to be whitelisted in the identity registry. When a transfer occurs, the token contract calls the isVerified)( function through the compliance contract before the transfer, to check in real-time whether the recipient's address is in the identity registry, and whether its associated identity contract contains the claims required by the claims subject registry, and these claims must be signed by authorized parties in the trusted issuer registry. This process ensures that only qualified investors who have passed KYC/AML checks can hold or receive security tokens.

Compliance execution is implemented through the canTransfer)( function, which is called before each transfer to perform the following key checks:

● Investor qualification matching: Verify whether the recipient meets the investor requirements for specific asset classes ) such as qualified investor status (

● Jurisdictional Restrictions: Ensure that the jurisdictions where both parties are located allow such transactions.

●Holding limit control: Check whether the transfer will cause a single investor to exceed the holding limit.

●Compliance with global rules: Verify whether it meets the other global rules set by the issuer or regulatory authority.

This design embeds compliance requirements directly into the token's contract, transforming regulatory rules into automatically executable on-chain controls. These rules are dynamically upgradable through compliance contract updates, without the need to modify the token contract itself, in order to adapt to the continuously improving compliance framework.

Taking the stablecoin regulatory framework implemented by the Hong Kong Monetary Authority )HKMA### starting in August 2025 as an example, ERC-3643 can meet the regulatory requirements of the following regulations:

i) Identity verification for stablecoin holders

Section 6.5.3 of the "Regulatory Guidelines for Licensed Stablecoin Issuers": Licensees should identify all operations related to each specified stablecoin throughout its entire token lifecycle, which should cover deployment, configuration, minting, burning, upgrading, pausing, resuming, blacklisting, unblacklisting, freezing, unfreezing, whitelisting, and the use of any operational wallets.

Article 5.11 of the "Guidelines on Combating Money Laundering and Terrorist Financing": Unless the licensee can prove to the Monetary Authority that such risk mitigation measures can effectively prevent and combat money laundering, terrorist financing activities, and other crimes, the identity of each stablecoin holder shall be verified by one of the following parties: the licensee ( even if there is no customer relationship between the holder and the licensee ); a properly regulated financial institution or virtual asset service provider; or a reliable third party.

The above two guidelines require stablecoin license holders to verify the identity of stablecoin holders and manage the permissions for all operations during the token cycle. ERC-3643 supports binding each stablecoin holder's wallet address with on-chain identity declarations (such as KYC status, place of residence) and verifies in real-time through Compliance contracts.

ii) Transaction control and real-time screening

Clause 5.10 of the "Guidelines for Combating Money Laundering and Terrorist Financing": Licensees may implement various measures to mitigate the risk of stablecoins being used for illegal activities. Examples of such measures include:

(a) adopt appropriate technological solutions( such as blockchain analysis tools) to continuously screen stablecoin transactions and related wallet addresses outside the initial distribution scope;

( will be flagged and blacklisted for wallet addresses associated with sanctions or illegal activities;

And Article 6.36: )a( adopts a risk-based approach to monitor stablecoin transfers conducted with counterparties...; and )b( regularly and/or upon the occurrence of triggering events, to be aware of any greater money laundering and terrorist financing risks ) review the information obtained based on the due diligence measures taken on stablecoin transfer counterparties as per paragraph 6.33...

The ERC-3643 Compliance contract supports customized transaction rules (such as allowing transfers only between KYC addresses) and dynamically updates the whitelist and blacklist. If the recipient has not passed KYC or is on the blacklist, the transaction is automatically terminated.

( Conclusion

The core competitiveness of ERC-3643 lies in directly encoding regulatory requirements into the token protocol layer, providing a secure bridge for traditional finance to enter the blockchain world. This design addresses the compliance issues that traditional financial institutions are most concerned about, including investor verification, jurisdictional restrictions, and transaction monitoring. On the operational level, ERC-3643 offers unprecedented transparent oversight capabilities to regulatory authorities. All identity verification records and compliance decisions are stored on-chain in a verifiable manner, allowing regulators direct access without relying on post-issue reports from issuers. This transparency not only reduces regulatory costs but also enhances market integrity, laying the foundation for tokenized assets to gain mainstream recognition.