Author: Milly Bitcoin 2015-08-27 16:06:04
Published on: 2015-08-27T16:06:04+00:00
The solution to implementing Anti-Money Laundering-Know Your Customer (AML-KYC) procedures within the Bitcoin protocol is to have them sit on top of it. For example, Coinbase checks bank accounts and links Bitcoin addresses to their database, before requesting an explanation for usage and tracking coins upon purchase. These activities do not require changes to the Bitcoin system itself. Developing standards for using Bitcoin is a potential solution, allowing entities to choose whether or not to follow AML-KYC procedures when conducting business. Adding extra data to transactions indicating compliance with AML-KYC procedures could lead to the creation of a "white list" of compliant transactions rather than a "black list" of non-compliant ones. However, it is unclear how this would work in practice.
Updated on: 2023-06-10T21:07:32.526325+00:00