0x’s next-gen pricing engine, 0x v2, is not just about the best prices, it’s about a swap solution that meets your needs holistically.
One major challenge that Web3 businesses must navigate is compliance risk. Teams face legal and compliance liability for the trades executed on their platforms, including regulatory scrutiny, steep fines, or even criminal charges for facilitating trades tied to illicit activities, such as terrorist funding and hacks.
According to Elliptic, over $7 billion in illicit funds have been laundered through decentralized exchanges. To manage this risk, teams are currently left with two less than ideal options - pay thousands of dollars for screening services or cross their fingers that nothing bad ever happens.
Now with multi-layer Address Screening built-in, 0x v2 makes regulatory compliance easy, protecting you from inadvertently interacting with addresses connected to illicit activities without compromising on the privacy and decentralization your users expect. Address Screening provides zero-cost regulatory compliance out-of-the-box, with no additional engineering required.
Managing risk in Web3
A downside of DeFi’s permissionless nature is that any entity can use decentralized platforms to trade funds from illicit activities, such as money laundering and terrorist financing.
For growing Web3 businesses, this presents a very real regulatory risk. Teams face legal and compliance liability for the trades executed on their platforms, including regulatory scrutiny, steep fines, or even criminal charges for facilitating trades from illicit entities.
Traditional KYC checks, which require users to share personal data, run counter to the decentralized ethos and are not widely adopted in DeFi, as crypto users are generally reluctant to share personal data. As such, teams need a way to block bad actors from using their applications for swaps without compromising the privacy and decentralization that their users demand.
Currently, Web3 businesses have two less than ideal options when it comes to compliance - pay thousands of dollars for screening services via a third-party security vendor or hope that nothing bad ever happens.
For teams bootstrapping their products, the cost of these services is prohibitive, leaving them exposed to substantial risk. For more established businesses, beyond the outright cost, these services can require significant engineering resources to integrate into their tech stack. Now, there’s an alternative.
Regulatory compliance built-in
Say hello to 0x Address Screening, a seamless compliance solution built directly into 0x v2.
Address Screening utilizes multi-layer screening via Chainalysis and our own internal blocklist to effectively detect and block addresses connected to illicit activity. Multi-layer screening ensures that all addresses interacting with your application are screened for ties to terrorist funding, sanctions, hacks, money laundering, and more, all with ~1ms latency.
Beyond addresses connected directly to illicit activity, Chainalsysis also considers the degree of exposure for addresses, for example if a bad actor attempts to obfuscate funds by distributing it to different addresses. And on top of Chainalysis’ industry-leading screening, teams often share addresses they’re investigating with us before they land on Chainalysis radar, enabling us to detect and block high-risk addresses early through our internal blocklist.
Seamless protection: No engineering required. 0x APIs provide seamless protection with Address Screening built-in for all integrators. Continue to provide the best all-in prices to your users, while protecting yourself from interacting with high-risk addresses.
Zero-cost compliance: Access to screening APIs can be a significant expense, up to thousands of dollars a month, for Web3 applications. 0x offers protection at no additional cost.
We believe this added layer of security is a crucial step forward, enabling you to continue to serve your users permissionlessly while deterring bad actors from your platform. 0x Address Screening helps protect you from regulatory risk and potential PR headaches so you can focus on what matters, your product.
Ready to get serious?
0x’s next-gen pricing engine is now available to all integrators! v2 is built for serious onchain apps, featuring powerful new monetization features, enhanced security, and industry-leading buy/sell tax support.
Migrate from v1 to v2 today with our quick-start guide, or book a v2 onboarding session.
New to 0x? Sign-up for a free account and get started building with our all-new Swap TypeScript SDK, the easiest way to integrate v2 into your app.
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