KYCGuard

This project is a blockchain-based token transfer system designed to ensure compliance with KYC (Know Your Customer) regulations. It integrates with HashKey’s KYC infrastructure, which means that only verified users can receive, transfer, or mint tokens. The core functionality relies on smart contracts that query HashKey’s KYC verification data before approving any token operations.

The system works as follows: users first complete KYC verification through the HashKey platform. Once verified, their wallet address is recognized as compliant. When initiating a token transfer, the smart contract checks both the sender’s and recipient’s KYC status. If the recipient has not been verified, the transaction is rejected. This ensures that certified tokens only flow between compliant addresses, maintaining a high standard of regulatory adherence.

Additionally, the project includes a token minting function controlled by a smart contract with strict permissions. Only authorized accounts can mint new tokens, and these tokens can only be sent to verified addresses. This controlled minting process prevents unauthorized asset creation and ensures that all circulating tokens remain within the compliant ecosystem.

In summary, this project provides a robust solution for regulatory-compliant token management, enhancing transparency, security, and adherence to legal requirements within the blockchain ecosystem.

This project was built using Solidity smart contracts deployed on the HashKey testnet, integrated with HashKey’s KYC infrastructure to ensure regulatory compliance. At its core, we implemented a custom ERC-20 token contract enhanced with logic to check KYC statuses before allowing any token transfer or minting operation.

We utilized the HashKey KYC system’s on-chain verification calls, where each wallet address is either marked as compliant or non-compliant. The smart contract queries the HashKey KYC endpoint before any token transaction is finalized. If the recipient address hasn’t been verified, the transaction is automatically reverted. This integration was made possible by leveraging HashKey’s standardized KYC verification interface, which simplified the process of integrating compliance checks directly into the token’s transfer logic.

On the front-end side, we built a simple yet effective user interface using modern JavaScript frameworks. The UI connects directly to the deployed contracts, showing users their current KYC status, wallet address, and token balances. By integrating these elements, users can easily see whether they meet compliance standards before initiating any token operation.

During development, we encountered challenges related to timing and ensuring that the on-chain KYC data was properly updated before initiating transactions. We addressed this by implementing a real-time refresh mechanism on the front end that pings the KYC status before every action. This hacky but effective solution allowed us to display up-to-date compliance data without users having to manually refresh the page.

In terms of partner technologies, the HashKey testnet and KYC services were instrumental. They provided a ready-made compliance infrastructure that saved us from having to build our own KYC solution from scratch. This allowed us to focus on the token contract logic and the user experience, ensuring that the project met compliance requirements without adding unnecessary complexity.

By piecing together HashKey’s KYC infrastructure, Solidity smart contracts, and a lightweight front-end interface, we were able to deliver a fully functional, KYC-compliant token transfer system.