One concept: A regulated monetary establishment may affirm with mathematical proof that the holder of an handle sending or receiving cryptocurrency had sooner or later been verified by a trusted supply for KYC functions while not having to know the handle holder’s title or different figuring out info. The proof can 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 forex – to maintain on-chain crypto transactions frictionless. In the meantime, we may have system-wide, on-chain information analyses to satisfy AML wants, figuring out nodes engaged in patterns of illicit exercise, all with out invasive identification necessities.
