One concept: A regulated monetary establishment may verify with mathematical proof that the holder of an deal with sending or receiving cryptocurrency had in some unspecified time in the future been verified by a trusted supply for KYC functions without having to know the deal with holder’s identify or different figuring out data. The proof could be required solely on the on- and off-ramps between on-chain crypto world and the monetary system – i.e., when a cryptocurrency is being exchanged for fiat foreign money – to maintain on-chain crypto transactions frictionless. In the meantime, we may have system-wide, on-chain knowledge analyses to satisfy AML wants, figuring out nodes engaged in patterns of illicit exercise, all with out invasive identification necessities.
