> For the complete documentation index, see [llms.txt](https://docs.useshadowpay.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.useshadowpay.com/compliance/regulatory-framework.md). # Regulatory Framework ShadowPay's privacy model is built around a single distinction that shapes everything else in this section: confidentiality, not anonymity. Your address stays visible on-chain. Your identity is verified. Your transaction amounts are private until you choose to disclose them, or until compelled by lawful process. *** ## Operating framework ShadowPay operates under the GENIUS Act (July 2025), the framework governing regulated stablecoins in the United States. USDC is a qualifying regulated stablecoin under this framework, and ShadowPay's stablecoin operations are structured accordingly. *** ## KYC and identity verification Identity verification is required at account creation for every ShadowPay account, Personal, Business, or the parent account behind any Agent. Verification is tiered: | Tier | Requirements | Unlocks | | -------- | ------------------------------------------ | ---------------------------------------- | | Basic | Government ID, liveness check | Standard transaction limits | | Enhanced | Additional documentation, proof of address | Higher limits, Business account features | ShadowPay does not support anonymous or pseudonymous accounts. Every account is tied to a verified identity, even though transaction amounts moving through that account are encrypted. *** ## Travel Rule compliance Cross-border and above-threshold transfers are subject to Travel Rule requirements. ShadowPay supports compliance through: * Selective disclosure proofs shared with a counterparty's compliance system when required (see [KYC & Travel Rule](/compliance/kyc-and-travel-rule.md)) * Counterparty address screening via Chainalysis or TRM Labs integration * Standard identity information exchange between regulated originating and beneficiary institutions where applicable *** ## Jurisdictional scope ShadowPay's beta operates in the United States and select EU jurisdictions. Jurisdictions with an explicit prohibition on crypto payment services are excluded from beta access. *** ## Data residency User metadata, meaning account profiles and KYC records, is stored in jurisdiction-appropriate regions based on where the account was opened. On-chain data is global by nature, since it lives on Solana rather than in ShadowPay's own infrastructure, and this is disclosed clearly during onboarding. *** ## Why privacy and compliance aren't in tension Confidential Balances hides amounts. It does not hide identities. Addresses remain public and permanently linked to a verified account holder. ShadowPay retains the ability to respond to lawful legal process directed at a specific account through the selective disclosure mechanism described in [Selective Disclosure & Audit Export](/privacy-and-confidential-transfers/selective-disclosure.md). This is the model the Solana Foundation has publicly endorsed for privacy-preserving payments, and it's the model the entire Solana Confidential Balances ecosystem is built around. *** ## Next * [KYC & Travel Rule](/compliance/kyc-and-travel-rule.md) * [Selective Disclosure & Audit Export](/privacy-and-confidential-transfers/selective-disclosure.md) --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.useshadowpay.com/compliance/regulatory-framework.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.