Elective AML-KYC and the MonetaryCoin Series
AML-KYC stands for Anti-Money Laundering Know Your Customer, a series of best practices applied by financial institutions to reduce crime.
After the KYC feature is released, the MonetaryCoin series (MERO and MCHI today) stakeholders may elect to add or subtract AML-KYC information to a MonetaryCoin wallet address. It then falls to the receiving party to verify the accuracy of the personal information. Most parties insisting on AML-KYC are regulated financial institutions with verification and record keeping processes.
If you ran an ICO without gathering and securely storing AML-KYC information about your investors, fiat banks may refuse to open an account for your company. In future, when banks begin to more commonly trade crypto, transaction by transaction AML-KYC data may be required in some cases.
MonetaryCoin Series AML-KYC data are not visible on the blockchain because they are encrypted and stored off-chain. This feature reduces the potential network drag caused by each address carrying increasing amounts of otherwise irrelevant data. A hash of the AML-KYC data is stored on the blockchain but only the recipient address owner can attach the hash to the off-chain data and decrypt its content. This reduces the risk of exposing sensitive information to unrelated parties. To restore anonymity, a sender may abandon its wallet address and create a new one after the transaction.
Abandoning a wallet reminds me of Jaqen, the faceless man, from HBO’s hit series, Game of Thrones. Jaqen mystically changes faces at will, though he does possess an original identity. When the wallet identity is no longer useful, simply abandon it similar to the way Jaqen changes faces.
Their are plenty of ways to be anonymous in crypto, a MonetaryCoin can do that too — or it can be a way to self-identify without permanently identifying. The choice is yours.
