ERC-3643 Token Development for Asset Manager

Frequently Asked Questions

01.What is ERC-3643 and why do asset managers need it?

ERC-3643, also known as the T-REX standard (Token for Regulated EXchanges), is an Ethereum token standard that embeds KYC, AML, and jurisdiction compliance logic directly into the smart contract layer. Asset managers need it because it ensures only verified, whitelisted investors can hold or transfer security tokens, satisfying regulatory requirements under Regulation (EU) 2023/1114 (MiCA) and FATF Travel Rule obligations without requiring off-chain enforcement gateways.

02.How does ERC-3643 differ from ERC-20 and ERC-1400?

ERC-20 is a permissionless transfer standard with no built-in compliance. ERC-1400 adds partition-based transfer restrictions and controller roles but lacks a standardized on-chain identity layer. ERC-3643 adds a full identity and compliance architecture: an IdentityRegistry linking wallets to ONCHAINID contracts, a ClaimTopicsRegistry defining required credentials, a TrustedIssuersRegistry whitelisting credential providers, and a modular Compliance contract enforcing per-jurisdiction rules at every transfer. This makes ERC-3643 the only standard capable of meeting MiCA Article 68 governance requirements at the protocol level.

03.What does MiCA compliance require from security token issuers in the EU?

Under Regulation (EU) 2023/1114 (MiCA), asset-referenced token and e-money token issuers must satisfy Article 68 governance requirements including KYC/AML systems, effective ICT resilience aligned with DORA (Regulation EU 2022/2554), and Article 76 trading platform obligations requiring non-discretionary, fair-and-orderly transfer rules. The EU Transfer of Funds Regulation extends the Travel Rule to all VASP-to-VASP transfers regardless of amount, with no minimum threshold. ERC-3643 provides the on-chain architecture to satisfy these requirements by encoding investor eligibility and transfer rules directly into the token contract.