Circle’s CEO, Jeremy Allaire, announced the stablecoin issuer company has released a Compliance Engine, which “helps companies build onchain while meeting rigorous demands for compliance.”

Circle claims the Compliance Engine will help protect users and meet regulatory requirements with “customizable, programmatically enforced compliance checks.” Allaire, who oversold and boasted about Circle's "tremendous capabilities," claimed they're now offering these tools to developers and teams building financial applications onchain.

As part of the Compliance Engine, the new Transaction Screening tool can be used by users to detect risky and suspect transactions. Additionally, the Transaction Monitoring tool will “help identify potential high-risk behaviors.”

Meanwhile, the new Travel Rule service will assist “companies maintain compliance with global travel rule requirements for large on-chain transactions.” 

Explaining the product’s features, Allaire states, “Compliance Engine is automatically integrated with Circle Programmable Wallets, our comprehensive, multichain smart wallet as a service offering for developers.”

Allaire’s announcement stirred up the crypto community, leading to criticism of the company's past handling of fraudulent crypto transactions. One notable critique came from the popular online sleuth, ZachXBT, who claimed:

“You should worry about your own compliance capabilities before offering a product.”

ZachXBT further shared his frustration with the stablecoin company, claiming, “I can literally go on-chain and flag a DPRK IT worker receiving USDC payments from a Circle account every month, but it’s pointless because I know your team will not do anything.”

The online detective shared examples where Circle took its time to blacklist a major security incident in December 2023. Furthermore, ZachXBT questioned how Mango Markets' hacker, Avi Eisenberg, used his Circle account to transfer the stolen funds, despite the stablecoin firm claiming to have "robust compliance."

With ZachXBT bringing Circle's past into the spotlight, community members are now questioning whether they should trust the stablecoin firm.

Read more: ZachXBT slams Circle amid NY HQ move, accuses of profiting exploits