IMPACT OF BLOCKCHAIN-BASED REGULATORY COMPLIANCE SYSTEMS ON FINTECH STARTUPS A STUDY OF CRYPTOSHIELD SOLUTIONS PVT. LTD.
DOI:
https://doi.org/10.29121/shodhai.v2.i2.2025.55Keywords:
Blockchain, Regulatory, Compliance, FintechAbstract
The rapid growth of fintech start-ups has led to a drastic change in the financial ecosystem in India, but at the same time, they are under scrutiny from various regulatory bodies because of the volume of risk associated with digital finance (specifically financial fraud, data security, and transaction risk) associated with digital finance. While compliance with the various regulations has historically been a lengthy manual process that involved multiple compliance departments and therefore had a high level of inherent error risk, with the introduction of blockchain technology, there is now the potential to develop compliance systems that use automated and tamper-proof processes that allow for an increased amount of transparency, auditability, and operational efficiencies.
Thus, the main focus of this research paper is to evaluate how a blockchain-based system for regulatory compliance might impact fintech start-ups. A case study was conducted on CryptoShield Solutions Pvt. Ltd., a Mumbai-based RegTech company specializing in distributed ledger–based compliance platforms. The data was collected during the internship through observation, workflow analysis, discussions with professionals, and review of anonymized compliance records.
The findings indicate that fintech firms adopting blockchain compliance tools have observed 35–45% reduction in manual reporting hours, improved accuracy, faster audit completion cycles, and stronger trust among investors and regulators. However, awareness remains shallow due to skill gaps, cost perception, and lack of standardized guidelines. The final recommendations of the study on stronger digital adoption efforts, awareness programs, and capacity-building initiatives will significantly accelerate the pace of blockchain-enabled compliance transformation in India.
References
Financial Action Task Force (FATF). (2023). Virtual Asset Regulatory Standards: FATF Guidelines. FATF.
Mishra, A., and Jain, R. (2023). Digital Compliance and Governance in Fintech Enterprises.
Sarker, D. (2022). Blockchain as An Audit Tool in Financial Compliance.
World Economic Forum. (2024). Digital Trust and Blockchain Monitoring Report. World Economic Forum.
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Copyright (c) 2025 Ms. Tushara Kottayi, Dr. Akshay Kasare , Prof.(Dr.) Bhawna Sharma
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