AML PoS

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Inspiration

I build a company called https://optimargin.com/ for margin optimization and maintaining control, custody and access to trading positions was an issue. how could I access position/trading data while maintaining privacy and achieving results? I see the same problem in AML/KYC

What it does

The AML Token solves the problem of regulatory compliance within DeFi using a decentralized zero-knowledge identity token that utilizes existing KYC infrastructure and procedures. Regulated financial institutions that collect KYC information join a decentralized organization in order to issue AML Tokens that their clients can use to engage with decentralized finance protocols. Decentralized finance protocols in turn pay a small fee to validators in order to be in compliance with the regulations specific to their clients’ jurisdiction.

The financial crypto ecosystem for a typical user consists of two main components – the on/off ramps, which are the regulated exchanges in various jurisdictions, and the now-myriad centralized and decentralized hubs for trading, staking, borrowing, lending, etc. Users and organizations comply with the KYC (know-your-customer) regulations in various jurisdictions at the on/off ramps when converting fiat to cryptocurrency and vice versa. However, between the on-ramp and off-ramp is regulatory terra incognita, where users can move cryptocurrency between anonymous wallets and bypass any existing AML regulation with relative ease, as there is no middle-man between any transaction that checks whether a specific wallet or decentralized market is compliant or not. This makes regulators highly motivated to address the crypto ecosystem as a potential site for illicit financial activity, which puts the crypto holdings of all the legitimate actors at high downside risk. The other problem is anonymous crypto-native transactions. One does not necessarily have to convert fiat to crypto in order to own crypto, one can simply receive crypto into a newly-created anonymous wallet. There are currently still many ways to convert crypto to fiat outside the purview of regulators. The AML Token aims to address this problem with a decentralized zero-knowledge identity token that provides a regulatory solution to the crypto ecosystem which puts all legitimate users and organizations in compliance automatically across the entire cryptosphere, and fundamentally allows organizations within the crypto ecosystem to avoid transacting with potentially risky individuals.