Coinbase has urged US lawmakers to modernize the Bank Secrecy Act (BSA) by incorporating Zero-Knowledge Proofs (ZKPs) into the country’s financial compliance framework.
In an Aug. 4 statement, Coinbase’s Chief Legal Officer Paul Grewal argued that ZKPs could enhance financial transparency while simultaneously protecting consumer privacy.
Why Zero-Knowledge Proofs?
According to him, the existing Know-Your-Customer (KYC) process mandated by the BSA poses security risks, as it is often stored in large, centralized databases vulnerable to cyberattacks.
While he noted that the collected information frequently goes unused, he pointed out that they remains an attractive target for criminals.
Considering this, he argued that ZKPs offer a novel solution that allows users to prove specific details—such as their identity or age—without disclosing the underlying data.
According to him:
“In financial cases, you could open a new account with a company like Coinbase without sharing decades
We współpracy z: https://cryptoslate.com/coinbase-urges-us-to-modernize-financial-compliance-with-zero-knowledge-proofs/
