Web3 Compliance refers to the adherence of decentralized applications, protocols, and platforms to relevant legal and regulatory standards. This involves navigating complex areas such as anti-money laundering, data privacy, securities regulations, and consumer protection within a permissionless and often pseudonymous environment. It is a critical aspect for the mainstream adoption and legitimization of decentralized technologies.
Context
The field of Web3 Compliance is rapidly developing as regulators globally seek to apply existing rules or create new ones for decentralized finance (DeFi), NFTs, and other blockchain-based innovations. News frequently reports on new regulatory proposals, enforcement actions, and the efforts of Web3 projects to implement solutions that satisfy compliance requirements without compromising decentralization. The ongoing debate centers on how to effectively regulate decentralized systems that lack traditional intermediaries.
The new compliance primitive uses zero-knowledge proofs and attestations to reduce dApp onboarding friction while establishing a reusable identity layer.
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