IT Infrastructure Engineer, Olalekan Okunleye, has urged digital assets investors to jettison traditional regulatory models for a hybrid governance framework that incorporates AI-driven compliance systems, advanced cryptographic authentication and real-time analytics.

The researcher said with money laundering, fraud and illicit financial flows on the rise in the digital age, there was a need to tackle these financial challenges with sophisticated tools.

Okunleye, in his research titled: ‘The Role of IT Infrastructure and Information Governance in Mitigating Financial Crime Risks in Stablecoin Transactions,’ provided a blueprint for a global IT infrastructure that can safeguard digital assets against evolving cyber threats.

Okunleye, who recognised that legacy compliance models were ill-equipped to monitor decentralised transactions in real-time, developed an AI-powered compliance engine that integrates Know Your Customer, KYC, and Anti-Money Laundering, AML, protocols directly into blockchain networks.

In his research, he proposed a solution which leverages deep learning algorithms to detect suspicious transaction patterns and automatically flag high-risk activities, reducing financial crime risks by over 80 per cent.

He stated: “The rapid adoption of stablecoins presents an unprecedented regulatory paradox. On one hand, they provide financial inclusion, borderless transactions, and economic efficiency. On the other hand, they create vulnerabilities that bad actors exploit due to the lack of standardized governance frameworks. Financial security is not a checkbox, it is a continuous engineering challenge that demands innovation, foresight, and precision.

“Imagine a self-regulating blockchain ecosystem where every transaction is intelligently analysed for compliance without violating user privacy. That’s the infrastructure we are building.”

The researcher also proposed a multi-layered system such as deecentraliseed identity verification to eliminate the need for centralised intermediaries while ensuring transaction authenticity.

He stated: “AI-powered fraud detection for implementing real-time transaction analysis that predicts fraudulent behaviour before it occurs. Blockchain-integrated compliance systems to utilise smart contracts to enforce regulatory requirements automatically and cloud-based security architecture to enhance the resilience of financial networks through quantum-safe encryption.

“Financial security must evolve at the same speed as financial technology. We cannot rely on outdated control mechanisms to regulate 21st-century financial systems. The biggest challenge is achieving equilibrium because too much regulation suffocates innovation, but inadequate regulation opens the floodgates for financial crime. We need intelligent IT infrastructure that understands this balance and evolves in real-time.”

He urged regulatory authorities to implement risk-based governance models that use AI to detect high-risk transactions without imposing blanket restrictions.

For financial Institutions, he stated: “Deploy AI-powered threat detection systems integrated with cloud-based security for real-time fraud prevention. Adopt transparent reserve audits and decentralised governance mechanisms to ensure compliance while preserving decentralisation.”