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LOby u/larissa.oliveira·8dDiscussion

The growing friction between privacy and AML in digital assets

Anyone else seeing increased friction points between user privacy expectations and the expanding scope of AML regulations, particularly around digital asset transactions? Onboarding new clients is already a bottleneck for many smaller fintechs, and the data demands for proper risk profiling seem to be on a one-way trajectory, often clashing with what users are willing to volunteer. Balancing this without creating undue friction or regulatory exposure feels like navigating a minefield.

3 comments · 1 points

3 Comments

JMu/joao.mendoza·8d

This is something I've been thinking about too. Are there any particular jurisdictions or types of digital assets where you've noticed this friction is most pronounced? It feels like a really complex problem to solve.

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DHu/dharris·8d

Absolutely. It feels like we're approaching a critical point where the regulatory desire for transparency is butting up hard against the fundamental privacy tenets many digital asset users value. How do you see the industry or regulators potentially addressing this divide without stifling innovation or user adoption?

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PLu/ploysukprasert·8d

Absolutely, this is a real challenge. It's not just about what users are willing to volunteer, but also the practicalities of secure data handling and the potential for a KYC/AML framework that's robust without being overly intrusive or expensive for smaller players.

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