SEC Commissioner Says Zero-Knowledge Proofs Can Verify Compliance Without Collecting Personal Data
Summary
- Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission (SEC), said zero-knowledge proofs can be used to verify regulatory compliance without directly collecting users' personal data.
- Peirce said zero-knowledge proofs could be used to verify whether users meet required conditions without revealing their personal information.
- She said current know-your-customer (KYC) and anti-money laundering (AML) procedures are creating a "data haystack" by unnecessarily accumulating vast amounts of personal data, and stressed the need to reduce data collection while verifying only the information required for compliance.
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Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission, said zero-knowledge proofs can be used to verify regulatory compliance without directly collecting users' personal data.
Cointelegraph reported on Sept. 24 that Peirce said zero-knowledge proofs could be used to confirm whether users meet required conditions without revealing their personal information.
She said current know-your-customer, or KYC, and anti-money laundering, or AML, procedures are resulting in the unnecessary accumulation of vast amounts of personal data.
Peirce described the problem as a "data haystack" and stressed the need to find ways to reduce personal data collection while verifying only the information needed for compliance.
JH Kim
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