🚨 SEC Commissioner Hester Peirce Calls for Rethinking KYC & AML
U.S. SEC Commissioner Hester Peirce has called for a reassessment of how Know Your Customer (KYC) and Anti-Money Laundering (AML) rules collect and use personal information.
Speaking at SIFMA’s Digital Assets Conference on September 23, Peirce argued that simply collecting more and more data does not necessarily make financial oversight more effective. She compared the approach to building a larger “data haystack,” which can make it harder to identify the important information regulators are actually looking for.
Peirce highlighted zero-knowledge proofs (ZKPs) and other cryptographic tools as a possible alternative. These technologies can potentially verify that a person meets a specific requirement—such as being eligible or not appearing on a sanctions list—without revealing unnecessary personal information such as their name, income or address.
She also suggested making it easier for regulated institutions to rely on trusted third-party identity verification, which could reduce repeated collection and storage of the same sensitive information.
🔐 Privacy + Compliance Could Be a Key Theme for Future Digital Finance
⚠️ This reflects Commissioner Peirce’s views, not an announcement that current KYC/AML requirements have been removed.
#Crypto #BinanceSquare #KYC #AML
#CryptoNews
U.S. SEC Commissioner Hester Peirce has called for a reassessment of how Know Your Customer (KYC) and Anti-Money Laundering (AML) rules collect and use personal information.
Speaking at SIFMA’s Digital Assets Conference on September 23, Peirce argued that simply collecting more and more data does not necessarily make financial oversight more effective. She compared the approach to building a larger “data haystack,” which can make it harder to identify the important information regulators are actually looking for.
Peirce highlighted zero-knowledge proofs (ZKPs) and other cryptographic tools as a possible alternative. These technologies can potentially verify that a person meets a specific requirement—such as being eligible or not appearing on a sanctions list—without revealing unnecessary personal information such as their name, income or address.
She also suggested making it easier for regulated institutions to rely on trusted third-party identity verification, which could reduce repeated collection and storage of the same sensitive information.
🔐 Privacy + Compliance Could Be a Key Theme for Future Digital Finance
⚠️ This reflects Commissioner Peirce’s views, not an announcement that current KYC/AML requirements have been removed.
#Crypto #BinanceSquare #KYC #AML
#CryptoNews
