# Hts Compliance Token

> Design compliance-grade fungible tokens on HTS for regulated securities and RWA — KYC workflows, freeze/unfreeze for regulatory holds, wipe after freeze for court-ordered scenarios, pause for emergencies, admin key rotation, mapping HTS roles to ERC-3643 modules (registry, compliance). Use when user mentions security token, RWA, investor accreditation, transfer restrictions, regulator freeze, ERC-3643, T-REX, compliance officer, or corporate treasury policy on Hedera.

- Skill: `evaluris-solutions/hts-compliance-token` (Agent Skill, multi-file: 8 files)
- Install (CLI): `npx skillmds@latest add evaluris-solutions/hts-compliance-token`
- Raw SKILL.md: https://api.skillmd.com/api/skills/evaluris-solutions/hts-compliance-token/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Security
- Author: Evaluris-Solutions (https://skillmd.com/u/evaluris-solutions)
- Updated: 2026-09-22
- Page: https://skillmd.com/skills/evaluris-solutions/hts-compliance-token

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## Overview

HTS provides **ledger-enforced** technical controls (KYC flags, freezes, wipes, pauses). **ERC-3643** (T-REX style) adds contract-level identity registry + modular compliance checks often deployed via Smart Contract Service — Hedera docs bridge these concepts under [ERC-3643 Real World Assets](https://docs.hedera.com/hedera/core-concepts/smart-contracts/tokens-managed-by-smart-contracts/erc-3643-real-world-assets-rwa.md). Use HTS when native performance/fee profile wins; use ATS (see `hedera-asset-tokenization-studio`) when productized lifecycle features win.

## When to use this skill

- Translating **legal policies** into concrete key custody + transaction flows.
- Comparing **pure HTS** vs **ERC-3643 on HSCS** vs **Asset Tokenization Studio** packaging.

## Prerequisites

- Legal/compliance alignment on freeze/wipe authorities (human processes).
- Testnet rehearsal before touching investor funds.

## Workflow

1. **Threat model roles** — compliance, treasury, legal, tech ops — map to `kycKey`, `freezeKey`, `wipeKey`, `pauseKey`, `adminKey`, `supplyKey`.
2. **KYC pipeline** — off-chain verification → on-chain `TokenGrantKycTransaction`.
3. **Restrict trading** — combine **freeze** + documentation of investor communications.
4. **Emergency pause** — `TokenPauseTransaction` halts movement network-wide for that token.
5. **Court-ordered seizure simulation (testnet)** — freeze target then `TokenWipeTransaction` per jurisdiction playbook **never without counsel**.
6. **Admin rotation** — schedule `TokenUpdateTransaction` / multisig ceremonies referencing `hedera-account-management`.
7. **ERC-3643 mapping** — see [references/erc3643-mapping.md](references/erc3643-mapping.md).

Scripts ([scripts/kyc-flow.js](scripts/kyc-flow.js), etc.) demonstrate SDK mechanics — policies live off-chain.

## Examples

**Example 1**

> “Investors must be accredited before receiving tokens.”

Off-chain accreditation → grant KYC bit → monitor Mirror for attempted transfers pre-compliance.

**Example 2**

> “Exchange needs to halt a sanctioned wallet.”

Freeze account at token level; escalate legally before wipe.

**Example 3**

> “How close is HTS to ERC-3643?”

HTS covers **mandatory controls** primitives; ERC-3643 adds **on-chain modular compliance** & identity registry patterns — often implemented via Solidity while still leveraging HTS for supply.

## Troubleshooting

| Scenario | Tip |
| --- | --- |
| Cannot wipe | Account must be frozen per rules |
| Investors panic-sell during pause | Communications playbook & regulatory coordination |

## References

- Local: [references/erc3643-mapping.md](references/erc3643-mapping.md), [references/regulatory-workflows.md](references/regulatory-workflows.md), [references/ats-pointer.md](references/ats-pointer.md)
- Product: [Asset Tokenization Studio](https://docs.hedera.com/hedera/open-source-solutions/asset-tokenization-studio-ats.md)