DApps now have a unique opportunity to implement this, both in the current largely unregulated environment and, in the future, when DeFi-specific AML/KYC regulations are enacted. In a regulation-free setting, public blockchain technology allows users to submit their identification documents, have their names screened against AML watchlists, have their on-chain activity scanned for AML risk, and store proof of each check in their wallet. Users can then interact with permissioned dApps, whose smart contracts can filter out those who have not passed the KYC checks.
Comments (No)