How KYC laws increase the exacerbation of privacy star-news.press/wp

The numbers are amazing, and the effects of equality: Revelation last month that more than 16 billion login data that extends to Apple, Google, Facebook and countless other platforms in multiple violations is not just a security failure. It is an inevitable result of an organizational framework that gives priority to collecting data on data protection.

Ironically, our current laws are known to the KYC laws, which are designed to protect consumers and prevent financial crimes, in fact millions of risk by asking some entities to collect sensitive data and keep them. Every time a passport and social security number is collected and copies of other personal documents to comply with KYC laws, they create “fuse” – the central treasures of valuable personal data that irresponsible on electronic criminals.

KYC laws do not put millions in personal danger and create national security risks to hacking by other governments, but they are also ineffective. The United Nations Labor (United Nations) and Financial Work (FATF) estimates that less than one percent of global illegal financing has stopped. Let that drown.

According to a study conducted Lexisnexis (2023)The cost of financial compliance with financial institutions around the world is approximately $ 250 billion. KYC laws impose a tremendous burden on the top of these risks for almost no benefit in stopping illegal financing. When regulations require companies to collect personal data, we should not be surprised when this data inevitably becomes a weapon against people who were supposed to protect. The solution to protect individuals’ data while ensuring compliance, which has been removed from the encryption world, is already present: the evidence of zero knowledge.

Performance of compliance

The traditional compliance with Kyc creates a dangerous paradox: the more the company’s comprehensiveness (or even the government!), Follow the rules, and the most attractive goal for the infiltrators.

Recent violations appear on major platforms such as Coinbase, which have seen nearly 70,000 users affected by an internal threat with estimated losses of $ 400 million, so that the most conscious security organizations are still at risk when they legally retain wide databases of sensitive personal information.

The problem is not that companies are indifferent to data; The problem is that our current regulatory frameworks impose the custody of the central data, which through the same nature provides the risks of personal and patriotic security. They become a single failure point that can display millions of individuals with a single successful attack.

This approach was logical in a representative era when it required verification of the physical inspection of the documents, but it was outdated and taxes of our digital age. We use compliance methods in the twentieth century to address the problems of the twenty -first century. The results were failed.

Zero knowledge provides evidence without exposure

Fortunately, innovations in encryption provide a front path that does not require companies to choose between compliance and privacy. ZkPS evidence is a fundamental shift in how we think about verifying identity. Using zero knowledge technology, users can check their identity without revealing any personal information and checking for seconds instead of days.

It is a simple concept elegantly: Instead of showing your leadership license to prove your life, you can provide a guide to your age without revealing your birth date, name, or any other identification information. The auditor gets the guide they need to comply, and never leave your data.

This innovation is not theoretical, it’s here now. Projects such as ZKPASSPORT shows how ZKPs can be born of identity, nationality and age without exposing basic data, while continuing to comply with safety and privacy systems.

Unlike other solutions, ZKPassport is completely open source, not ownership or captured by Big Tech (such as Google); There is no information that leaves the user device; The encryption can be easily upgraded using a new programming language called Noir; It can be turned on between Web2 and Web3; Biometric data is not required.

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Organizational

The question becomes a trillion dollars after that, whether our organizational institutions can adapt enough quickly to prevent the following catastrophic data that will fuel unprecedented levels of identity theft and financial fraud. We need immediate legislative changes worldwide, while realizing the potential for the privacy of ZKP technology and focusing on verification results, not imposing data collection.

Instead of requesting to store sensitive information, laws must allow encryption programs that achieve the same goals of compliance without creating a data calamity and protecting national and personal security.

The European Union’s approach to regulating privacy with the General Data Protection Regulation (GDPR) shows the promise, but even GDP does not go far enough to stimulate the methods of preserving privacy. We need regulatory frameworks that explicitly prefer technologies and methods that reduce data collection while maintaining safety standards.

Privacy and compliance in the future

As the digital identity continues to become central to everything we do, the shares of obtaining this right are enormous and the implications of them extend to a large extent. Technology is found today to build a world in which you do not need to surrender your privacy. ZKPS can enable age checking for social platforms, check income from home loans, and check citizenship for voting, all without central databases we know that they are always vulnerable to attack.

But technology alone is not enough; We need policy makers who understand that privacy and compliance do not oppose the forces. Instead, they are complementary goals that can be achieved simultaneously with the correct technological and organizational framework.

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The encryption path forward

Our inability to stop the data leakage should continue to be a awakening call in which it grows with all the new revelation of rating. Every day, we delay the implementation of privacy verification systems, open source, and centralization, which is another day towards a new breach, which leads to the danger of personal security and national security.

Among all industries that adopt KYC requirements, the financial sector was the most aggressive and could lead the fees towards compliance solutions to zero knowledge. The organizers must update the frameworks to explicitly allow the unification and motivation of zero verification methods.

Technology companies should continue to invest in privacy conservation systems now, instead of waiting to catch up with regulations. The current system is not only operating. We can either continue to build a continuous growing data calamity that matures for piracy, or builds that compliance and privacy can work alongside to determine the priorities of data protection on data collection, and support a more awareness of privacy.

We need to move from Kyc to ZKP, as quickly as possible.

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Responsibility: This article is an opinion article. The content may include the author’s personal opinion and subject to market conditions. Is market research before investing in encrypted currencies? The author or post does not bear any responsibility for your personal financial loss.