What would happen to Defi if the US government requires KYC? Would Defi be dead? or would all wallets have to change to support the user name, address, email, etc. If KYC was required for wallets how would they verified? Would there be centralized KYC or would each defi app have to do it’s own KYC of each person. Wouldn’t KYC break all the smart contracts too? Thoughts?
10 thoughts on “What would happen to Defi if the US government requires KYC?”
Protocols would simply block US citizens. Get a VPN
DeFi will continue. US citizens will be excluded.
I understand the question but I think another one should be considered in the first place: What will happen to the US finacial markets if it misses out on an innovation like this🤔❓
People in the US would simply use Radix which already has optional KYC with Instapass.
If the US government requires KYC for Defi, it could potentially create challenges for decentralized finance platforms. However, Oasis Network’s privacy-focused features, such as confidential computing and secure enclaves, could enable compliant KYC procedures without compromising user data or breaking smart contracts. This could potentially enable decentralized KYC solutions that preserve the privacy and security of users’ information.
Overall, Oasis Network’s capabilities in data protection and privacy could make it well-suited for navigating regulatory compliance in the evolving landscape of Defi.
It will only cause set back for the adoption of blockchain innovation in the US and also violates the major purpose of the innovation. The government simply wants to be in control and this is another way to retain that.
Defi can use Zero Knowledge technologies like the NexeraID to comply without giving out their data. That can be a solution.
Such KYC rules could not be enforced. People would thus ignore them.
Q Blockchain solves this problem with QID digital ID with kyc and zkproofs.
I don’t believe they would ever succeed in doing something like that. It’d be like blocking a tsunami with some rocks.