12. Regulatory Alignment and Compliance Roadmap

12. Regulatory Alignment and Compliance Roadmap

12.1 Compliance by Design

ENTRY’s foundation is built on the principle that regulation should not limit innovation but define its boundaries responsibly. Rather than building first and seeking compliance later, ENTRY integrates regulatory standards directly into its architecture. Every user verification, asset transfer, and validator operation adheres to a programmable compliance logic enforced by the Regulation LLM Compliance Engine.

This approach turns regulation into an infrastructure feature — automating what traditional finance performs manually: identification, risk screening, reporting, and audit assurance.

ENTRY’s compliance layer is continuously updated through the LLM’s modular training model, which incorporates evolving global frameworks such as MiCA, FATF, SEC, and MAS regulations. This ensures that the protocol remains aligned with the world’s leading supervisory jurisdictions.

12.2 The Regulated VASP Framework

ENTRY operates under a regulated Virtual Asset Service Provider (VASP) structure. This framework provides legal certainty for all participants and defines the compliance perimeter between ENTRY’s technology and its operational entities.

Key features of the regulated VASP model:

• Entity Registration: ENTRY entities are incorporated under the laws of Delaware, USA, and operate in coordination with recognized licensing jurisdictions globally.

• Legal Accountability: ENTRY’s compliance and onboarding services are delivered through regulated entities that meet KYC/KYB, AML, and Travel Rule obligations.

• Institutional Assurance: All participants interacting with ENTRY — including validators, custodians, and issuers — operate within the same verified perimeter, ensuring that every transaction is compliant by structure.

This regulated foundation enables ENTRY to bridge traditional and decentralized finance under a uniform compliance umbrella.

12.3 Alignment with Major Global Frameworks

European Union – MiCA and DORA

The Markets in Crypto-Assets (MiCA) regulation establishes a comprehensive regime for digital-asset issuance and trading across the European Union. ENTRY aligns with MiCA by:

• Supporting identity-based whitelisting and transfer restrictions for asset issuers.

• Enabling transaction monitoring and risk flagging consistent with MiCA’s AML/CTF provisions.

• Providing auditable reporting mechanisms compatible with DORA (Digital Operational Resilience Act) cybersecurity and operational standards.

United States – SEC and FinCEN

In the United States, ENTRY’s compliance logic incorporates frameworks consistent with the Securities and Exchange Commission (SEC) and Financial Crimes Enforcement Network (FinCEN).

• KYC/KYB Enforcement: All participants are verified through regulated VASP channels compliant with U.S. AML obligations.

• Non-Solicitation Standard: The ENT token is structured as a utility and governance asset, not a security. No public token sale or solicitation is conducted in the U.S. market.

• Record-Keeping and Reporting: ENTRY’s immutable audit layer supports ongoing compliance and transaction traceability requirements.

Singapore – Monetary Authority of Singapore (MAS)

ENTRY’s compliance model integrates directly with the MAS Payment Services Act (PSA) and Digital Asset Sandbox principles.

• Implements real-time AML/CFT screening in line with MAS expectations.

• Enables regulator dashboards for anonymized oversight.

• Supports cross-border regulatory data sharing while preserving user confidentiality.

Global Standards – FATF and OECD

ENTRY follows the Financial Action Task Force (FATF) guidance and OECD frameworks for cross-border asset transfers and digital-asset supervision.

• Travel Rule Compliance: ENTRY enforces rule adherence by embedding sender and receiver verification before transaction execution.

• Beneficial Ownership Transparency: Verified participants’ compliance attributes are cryptographically attested through zkProofs without exposing sensitive identity data.

• Risk-Based Monitoring: ENTRY’s LLM continuously classifies and updates risk exposure based on dynamic regulatory data.

12.4 Compliance Roles within the ENTRY Ecosystem

ENTRY divides regulatory responsibilities between its technological and operational entities:

• ENTRY Protocol: Provides automated enforcement, identity validation, and risk management through on-chain logic.

• ENTRY Foundation: Oversees governance, funding, and regulatory engagement to maintain neutrality and accountability.

• Regulated VASP Entities: Conduct KYC/KYB onboarding, manage fiat and stablecoin payment flows, and maintain full reporting under applicable licensing authorities.

This separation ensures that ENTRY functions as a technical compliance infrastructure, not a financial intermediary — maintaining both legal and operational clarity.

12.5 Dynamic Policy Engine

The Regulation LLM Compliance Engine continuously learns and updates compliance logic to reflect regulatory change in real time.

• Rule Library Updates: New laws and enforcement directives are added through verified data sources and reviewed by legal advisors.

• Automatic Re-Training: The engine is periodically re-trained to adapt to evolving AML, KYC, and reporting requirements.

• Audit Mode: Regulators and compliance officers can query decision logic in natural language, receiving both machine-readable and human-readable explanations of enforcement outcomes.

This ensures that ENTRY’s regulatory logic remains evergreen, responsive, and transparent.

12.6 Data Privacy and Jurisdictional Protection

ENTRY complies with global data-privacy regulations, including the General Data Protection Regulation (GDPR) and equivalent frameworks in other jurisdictions.

• Zero-Knowledge Data Sharing: Only cryptographic proofs are exchanged between participants and regulators — not raw data.

• Data Residency Controls: Sensitive user data remains within its jurisdiction of origin, secured under regulated custody providers.

• Right to Privacy: Individuals retain control over their credentials and can revoke authorization without compromising network compliance.

This design resolves the historical tension between regulatory transparency and individual privacy.

12.7 Roadmap for Global Regulatory Expansion

ENTRY’s compliance roadmap follows a phased approach aligned with regulatory licensing and market adoption:

Phase 1: U.S. and EU Licensing Foundations Establish regulated VASP entities under Delaware jurisdiction and register with EU-aligned frameworks through trusted partners.

Phase 2: APAC Expansion Deploy operational VASP licenses in Singapore, Hong Kong, and the UAE to enable cross-border interoperability for institutional clients.

Phase 3: Global Compliance Mesh Launch a distributed compliance mesh connecting regulators, financial intelligence units (FIUs), and participating institutions via ENTRY’s audit dashboards and zero-knowledge data exchange standards.

Phase 4: Institutional Integration Enable regulated custodians, exchanges, and central banks to integrate ENTRY APIs directly into their compliance and settlement operations.

12.8 Summary

ENTRY’s regulatory alignment transforms compliance from a manual obligation into an automated system of trust. By embedding global frameworks directly into its infrastructure and operating under a regulated VASP model, ENTRY enables safe, compliant participation for institutions, regulators, and users alike.

This approach ensures that ENTRY remains future-proof — adaptable to new jurisdictions, responsive to evolving laws, and trusted by both the private sector and supervisory authorities. ENTRY is not just compliant with regulation; it is built on regulation.