Evidence of zero knowledge can reputation systems reshape compliance and maintain privacy in Defi.
Opinion: Joseph Ji, co -founder of PWN DAO
This is not another article that insists that knowledge of the customer’s practices (KYC) is the only way to legalize encryption, nor does it announce that Kyc is governed by disappearance. Instead, let’s take a look at how we got here, and why we are still dealing with these burdens, as Kyc can be useful or harmful and how we can benefit from the option in “knowing your counterpart” to comply with a useful way in the relevant contexts without prejudice to privacy and freedom Choose.
KYC regulations have emerged from contracts for decades to combat financial crime. The 1970 US Bank Company’s Secret Law requires financial institutions to document and report large cash transactions. This is the basis for the due customer’s due care, even before the term “kyc” was made. With the expansion of Global Financial Systems, the Group of Seven established the Financial Labor Division (FATF) in 1989, with recommendations that countries adopt anti -money laundering measures (AML), including customer identification.
Read more
