Programmable AML

Programmable AML refers to anti-money laundering controls that are hard-coded into the smart contracts of a decentralized finance protocol. These rules can automatically flag or block transactions that originate from known malicious addresses or exceed specific risk thresholds.

This replaces manual oversight with automated, objective code execution. It ensures that the protocol remains compliant with global financial standards while operating in a decentralized manner.

By updating these programs, protocols can adapt to evolving legal requirements without disrupting the entire system. It is a key development for integrating decentralized derivatives into the broader global financial system.