KYCs for NFTs are a compromise between law and decentralization. The NFT space needs some cleaning up, says Ryan Wilkinson, Head of Product at Blockasset.co.
It is no secret that the world of digital assets and decentralized applications (DApps) is growing at an alarming rate. However, the industry remains a wild west for regulators and governments who struggle to find solutions to implement KYC/AML requirements without stifling growth and innovation.
KYC refers to “Know Your Customer”, which is a process that most (if not all) financial institutions must comply with to conduct business legally within their respective jurisdictions. The primary goal of the AML (Anti-Money Laundering) process is to ensure that financial institutions are not laundering money or funding terrorism (financing crime, essentially), and it is often used in conjunction with KYC to help protect consumers/investors.
Although AML processes are still relatively new to the blockchain and crypto industry, there is no doubt that NFT-related companies would benefit greatly from voluntarily adopting some…