Eduard, Founder of ZKX, an omnichain perpetual DEX, shared insights on ZK technology's potential to address evolving compliance in crypto during the TimeStamp Summit at Token 2049. He stated, 'There is an opportunity to leverage zero-knowledge systems to enable KYC while retaining the user's privacy. One approach involves the creation of KYC passports,which could take the form of Non-Fungible Tokens (NFTs) that are soul-bound to a particular wallet.

Using Zero-Knowledge proofs, we can prove that a wallet belongs to an individual from a specific country without revealing the actual data unless the user authorizes it to be shared with the KYC counterparty, and that provides a layer of much-needed privacy for everyone, meaning self-hosted wallets can still be anonymized. This flexible and powerful approach allows achieving the objectives of AML and KYC without always disclosing sensitive data or entrusting it to centralized entities."