Author: Justin Newton 2016-06-23 21:07:06
Published on: 2016-06-23T21:07:06+00:00
The Bitcoin developer community is against the idea of implementing any kind of built-in anti-money laundering (AML) or know-your-customer (KYC) tools in Bitcoin as it can draw expectations from all users to authorities. AML/KYC regulations differ from country to country and implementing them in a global consensus network would be difficult. BIP 75 was designed with these concerns in mind. Any identity exchange is done at the application level, on an encrypted https connection between the sender and receiver, without passing through or storing the blockchain. Only counterparties in the transaction and their service providers have visibility into the identity info exchanged. This was done to protect user privacy and fungibility, while still allowing those who want or need to exchange identity info the option to do so directly between peers, without touching the blockchain or network itself.
Updated on: 2023-06-11T18:46:15.306735+00:00