Global Regulatory Compliance & Strategy
A systematic approach for sustainable growth in the global cryptocurrency market.
TRAG.AI's Response Strategy in a Changing Regulatory Environment
The global cryptocurrency market is evolving at an unprecedented pace, with governments and regulatory bodies continuously refining legal frameworks to respond to this new financial paradigm. TRAG.AI recognizes this dynamic regulatory environment not as a mere constraint, but as an opportunity, and has established a proactive and strategic compliance system.
Our approach is not reactive but predictive compliance. We monitor major financial regulatory trends in North America, Europe, and the Asia-Pacific region in real-time, establishing customized compliance strategies that consider the specificities of each jurisdiction. We have designed our operating system based on an in-depth understanding of key regulatory frameworks, including the European Union's MiCA (Markets in Crypto-Assets) regulation, the US SEC and FinCEN guidelines, and South Korea's Specific Financial Transaction Information Act.
TRAG.AI's legal team and compliance experts collaborate closely with international financial regulatory networks, operating an early warning system for regulatory changes. This enables us to complete necessary system improvements and policy adjustments before new regulations come into effect.

Key Principles of Regulatory Compliance
Ethical operations prioritizing transparency, accountability, and user protection
KYC/AML: The Foundation of a Transparent Trading Environment
Multi-Layered Identity Verification Process
We implement real-time document verification, biometric authentication, and multi-factor verification procedures through an AI-powered identity authentication system.
Anti-Money Laundering (AML) Monitoring
We perform 24-hour transaction monitoring utilizing machine learning algorithms that detect suspicious transaction patterns in real-time.
Continuous Customer Due Diligence (CDD)
We proactively manage evolving risks through regular customer profile updates and risk reassessments.
Regulatory Reporting System
We maintain a seamless cooperation framework with relevant authorities through an automated reporting system for suspicious activities.
TRAG.AI's industry-leading KYC/AML policies block illegal capital inflow and contribute to fostering a healthy cryptocurrency ecosystem. Our customer verification process fully complies with the recommendations of the Financial Action Task Force (FATF) and is a comprehensive system that incorporates local regulatory requirements of various countries.
Identity Verification Accuracy
Achieves 99.7% high accuracy in filtering out false identities, maintaining a false positive rate of less than 0.3%.
Transaction Monitoring
Analyzes over 100,000 transactions per second in real-time to instantly detect suspicious patterns.
Compliance Team
More than 50 specialized personnel manage global regulatory compliance on a 24/7 basis.
Data Protection: The Core of User Trust
Encryption Technology
All user data is protected with military-grade AES-256 encryption, and data in transit is securely transmitted using TLS 1.3 protocol.
  • End-to-end encryption applied
  • Multi-layer security architecture
  • Zero-trust security model
Access Control and Auditing
Internal data access is strictly managed by applying Role-Based Access Control (RBAC) and the principle of least privilege.
  • Mandatory two-factor authentication
  • Retention of all access logs
  • Regular security audits conducted
Global Regulatory Compliance
We operate an integrated privacy framework that fully complies with data protection laws in various countries, including GDPR, CCPA, and personal information protection acts.
  • Ensuring data subject rights
  • Transparent data processing policies
  • Compliance with cross-border data transfer regulations
Personal data protection is TRAG.AI's top priority. We recognize user data not merely as digital assets but as sacred trust to be protected. To this end, we have established the position of Chief Privacy Officer (CPO) to strengthen organizational privacy governance and conduct quarterly Privacy Impact Assessments (PIA).
Our data protection strategy is based on the 'Privacy by Design' principle. When developing new services or features, we embed privacy protection mechanisms from the initial design stage and strictly adhere to the principle of data minimization, collecting only necessary data. Furthermore, we empower users with full control over their data, establishing a transparent system where they can request data access, modification, or deletion at any time.
Legal Risk Management: Proactive Response System
The legal uncertainty in the cryptocurrency industry can be a barrier to innovation. TRAG.AI overcomes these challenges with a systematic risk management framework.
Our legal risk management system consists of a three-line defense: Identify, Assess, and Mitigate.
Risk Identification
We track global regulatory changes and precedents in real-time with an AI-powered legal monitoring system.
Risk Assessment
We quantitatively analyze the probability and potential impact of each risk to determine priorities.
Risk Mitigation
We minimize risks through proactive legal consultation, policy improvements, and system updates.
Global Legal Advisory Network
We partner with leading law firms and regulatory experts in over 40 countries to secure professional advice on regional legal risks. This allows us to thoroughly analyze the regulatory environment of target markets in advance and establish optimal entry strategies.
Dispute Prevention & Resolution Mechanisms
We operate Alternative Dispute Resolution (ADR) processes to detect and resolve potential legal disputes early. Through arbitration and mediation procedures, we minimize litigation costs and aim for swift resolution, while also securing sufficient legal reserves for cases where litigation is unavoidable.
Compliance Education Program
We conduct mandatory quarterly compliance training for all employees and departmental legal risk management workshops. This fosters a culture where the entire organization understands and practices regulatory adherence, fundamentally preventing legal risks due to individual error.
"Regulatory compliance is not an expense, but an investment. TRAG.AI builds user trust through thorough compliance, which in turn leads to sustainable competitive advantage."
— TRAG.AI Legal and Compliance Executive
TRAG.AI's regulatory compliance strategy goes beyond mere legal obligation; it is a strategic choice to establish ourselves as a trusted leader in the global cryptocurrency ecosystem. We actively engage with regulatory authorities to contribute to a rational regulatory environment and play a leading role in setting industry standards.