Zero Knowledge Proof KYC Meet Regulatory Requirements Without Compromising User Data

With the Markets in Crypto Assets Regulation (MiCA) rolling into effect, and the United Kingdom rolling out their own stablecoin regime in the next few months, it is important as ever to begin learning about ways for your business to stay compliant within these regulations. Diana Tlupova, a former regulator with the Financial Conduct Authority (FCA), in an interview with Bitcoin.com, stated that the MiCA regulation poses challenges for the crypto industry. Businesses that are operating within the European Union must start preparing for MiCA licensing and knowing where they fit within the licensing regime. In this short Q&A, the former regulator states that regulators are starting to crack down more on AML monitoring and requiring KYC checks. She states, “I believe the nature of the KYC checks will be different in a way that defi protocols will entrust KYC verification and wallet screening to third parties. Based on the successful ID verification, the wallet is being whitelisted. In defi space, users will be able to own their KYC data and share it with other providers using Verified Credentials or Zero-Knowledge Proofs.” When asked about the battle between user experience and the technological complexity that compliance imposes on business, Tlupova said that if crypto companies want to survive in the market they must focus on embracing new technology and user experience, while keeping in mind laws and regulations.

ValidEntry provides a cost effective and simple integration solution to fulfill the requirements that MiCA imposes. It’s important to make sure your business is within these requirements and that you, your assets, and your clients are all safe and well protected. Our team can empower yours with user access management tools specifically designed for Web 3.0 applications and decentralized applications (dApps), focusing on entities within this context. Our platform allows for tailored levels of granularity in user access control. This customization encompasses features like zero-knowledge proof KYC for dApps, enhancing user privacy while ensuring the security and integrity of the decentralized ecosystem. With an adequate level of KYCcompliance, your company can protect itself from heavy security crackdowns by regulations like MiCA.

https://news.bitcoin.com/zk-proofs-enable-defi-platforms-to-meet-regulatory-requirements-without-compromising-user-data-says-ex-fca-regulator/

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