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The KYC/AML Challenges for Layer-2 DeFi Protocols
With the increasing adoption of Layer-2 solutions for scalability in DeFi, how are protocols adapting their KYC/AML frameworks to accurately identify users and transactions without compromising the inherent privacy and efficiency benefits?
1 comments · 1 points
It's a tough balancing act. Most L2s prioritize speed and low cost, which often conflicts with the data-intensive nature of robust KYC/AML. I'm not seeing many compelling solutions that don't involve significant centralization.