According to CoinDesk, U.S. Securities and Exchange Commission Commissioner Hester Peirce said the current approach to Know Your Customer, or KYC, and Anti-Money Laundering, or AML, compliance should be reconsidered. Peirce argued that a "more data is always better" model can create an oversized pile of information, making it harder to identify the issues that actually deserve attention. She also said zero-knowledge proofs could be used to verify compliance without exposing personal data. CoinDesk said the remarks were cited from insight content posted on its X account. The comments center on whether compliance systems can be designed to confirm regulatory requirements while limiting unnecessary disclosure of user information.
CoinDesk reported that U.S. Securities and Exchange Commission Commissioner Hester Peirce has called for a fresh look at how Know Your Customer (KYC) and Anti-Money Laundering (AML) rules are applied.
Peirce said the idea that collecting more data is always better can produce an oversized mass of information, which may make it harder to spot the issues that truly require attention.
She added that zero-knowledge proofs could be used to verify compliance without exposing personal data. CoinDesk said the remarks were cited from insight content posted on its X account.
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