Key Takeaways
- A Big Four firm reviewed AML/CFT controls across two of RedotPay’s licensed Hong Kong subsidiaries.
- The assessment covered customer due diligence, transaction monitoring, governance, quality assurance, staff training, and compliance resourcing.
- RedotPay now serves more than 8.5 million users across 100 countries and processes roughly $14 billion in payments annually.
- The review comes as regulators are imposing more traditional financial-crime controls on the growing stablecoin payments industry.
Stablecoin payments firm RedotPay has undergone an independent review of its anti-money laundering and counter-terrorist financing controls by a Big Four accounting firm, as regulatory scrutiny of the rapidly expanding stablecoin payments industry intensifies.
The Sept. 7 review covered Red Dot Trust Limited and Red F. Technology Limited, two of RedotPay’s licensed Hong Kong subsidiaries. The company did not disclose which of Deloitte, EY, KPMG, or PwC conducted the assessment.
The review tested RedotPay’s AML/CFT processes against relevant guidelines issued by Hong Kong’s Companies Registry and examined governance, quality assurance, customer due diligence, transaction monitoring, staff training and compliance resourcing.
According to RedotPay, the independent firm found that its processes and controls were capable of identifying, assessing, and managing financial-crime risks.
However, the assessment should not be confused with regulatory approval. RedotPay described it as an independent review and has not published the full report or identified the accounting firm involved.
RedotPay’s $14 Billion Scale Raises the Stakes
The assessment comes as RedotPay’s payments business expands quickly.
Founded in 2023, the company says it now has more than 8.5 million users across 100 countries and processes roughly $14 billion in annual payment volume. Its workforce has also grown to nearly 300 employees, with expansion across compliance, legal, security and regulatory affairs.
The wider market is growing with it.
Stablecoin card spending exceeded $1 billion in July alone, according to Paymentscan data cited by Reuters. RedotPay expects annual spending through stablecoin-powered cards to reach $50 billion by 2028.
The growth is pushing stablecoin payment providers closer to the compliance expectations historically applied to banks, payment processors and money transmitters.
RedotPay says it already screens transactions in real time through its Know Your Transaction program. Transactions deemed suspicious can be held for review, while accounts can be frozen and additional information requested. The company can also report suspicious activity to relevant authorities.
Its Big Four assessment follows other external checks. RedotPay has obtained SOC 2 Type II and ISO/IEC 27001 certifications covering areas such as information security and data protection, and the company says it also undergoes annual financial audits.
Stablecoin Growth Is Bringing Bank-Style Compliance
The timing is significant as stablecoin regulation increasingly moves beyond reserve requirements toward financial-crime controls.
In April, FinCEN and the Office of Foreign Assets Control proposed rules implementing the GENIUS Act that would treat permitted payment stablecoin issuers as financial institutions for Bank Secrecy Act purposes and require them to implement AML/CFT and sanctions compliance programs.
A separate June proposal would require permitted issuers to maintain effective customer identification programs.
RedotPay is also moving toward the US market. In August, the company secured its first state-level Money Transmitter License, with applications pending in more than 20 other states. Its US entity has not yet begun money transmission operations.
That makes the independent review more than a routine compliance exercise.
As stablecoin companies move from crypto-native products toward mainstream payments, regulators and financial partners are increasingly asking whether their controls can handle the same money-laundering, sanctions, and customer-identification risks faced by traditional payment companies.
For RedotPay, proving that those systems can keep pace with its rapidly growing transaction volume could become as important as the growth itself.
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Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
