The product is designed to enable Decentralizedย Finance and Webย 3.0 communities to comply with regulations while maintaining community membersโ privacy.
Cryptocurrency payments company Etonec, in partnership with Mina Foundation, will roll out a new zero-knowledge (ZK) proof-powered regulatory compliance tool for the decentralizedย financeย (DeFi) and Webย 3.0 spaces, reportsย by a Thursday press release.
The tool will begin โaddress[ing] existing gaps within the privacy and compliance spaceโ byย supplying know-your-customer (KYC) and anti-money-laundering (AML) services on the Lumina DEX when it goes live thereafter inย theย year, read the release The prototype is powered by zkApps, which enables private and compliant transactions.
โThe zkp-ID solution will secure builders can do so in a way that helps satisfy concerns of KYC and AML regulatoryย authorities aroundย theย world without requiring users to share sensitive personal identifying information,โ Mina Foundation COO Kurt Hemecker said.
Etonecโs partnership with decentralized exchange Lumina DEX will use zero-knowledge technology to create a sort of permissioned pool, a liquidity pool market that is compliant with AML regulations. This will hopefully allow the Decentralizedย Finance community to attract more institutional investors to the space and grow, Jonathan Knoll, co- Founder and head of strategy at Etonec, informed CoinDesk.
The compliance tool isnโt solely designed for decentralized protocols. It likewise intendsย to serve a wide range of applications across the Webย 3.0 space, the team behind its development informed CoinDesk.
โItโs broader than just DeFi,โ Hemecker stated. โYouโre gonna have a large number of use casesโฆwhere you can allow users to control their own data, privacy and to decide who and what they want to informationย exchange with.โ
protocolsย ofย Decentralizedย Finance have increasingly become a target of regulatorsโ efforts to assert greater control over the cryptocurrency industry. In April, the Unitedย States Treasury Department announced a precedent-setting illicit finance danger assessment for the Decentralizedย Finance sector, Reuters reported.
Stephen Alpher.
