Compliance Centric Normalization Techniques for Cryptocurrency Payments within SAP Ecosystems

Abstract

The enhanced adoption of cryptocurrencies as payment methods in business systems such as SAP offers new operational possibilities while concurrently posing serious challenges in compliance. Existing ERP models are incompatible with the crypto transaction's decentralized, volatile, and multi-chain characteristics which creates gaps in auditability, regulatory frameworks, and financial reporting. This work suggests a compliance-centric normalization approach that automates governance and risk management for tokenized transactions within SAP ecosystems using structured ledger mappings, risk-weighted token classification, and regulatory logic corresponding to FATF, MiCA, and IRS guidelines. The model directly connects with SAP FI, MM, and SD modules and transforms blockchain native transactions into normalized journal entries in real time, making them electronically traceable within the GRC and audit layers of SAP. Experimental simulations of more than 1000 transactions showed an accuracy exceeding 94.6% with normalization while audit compliance rates improved by 62%, and discrepancies in the ledger decreased by 48%. These findings create a manageable framework for businesses seeking to integrate crypto payments without compromising financial transparency, compliance, and internal governance standards.