Overview
The Identity & Compliance domain covers KYC/AML credential management, accreditation verification, allow/deny list enforcement, attestations, and revocation mechanisms for institutional blockchain operations.Key Focus: Enable public verification of compliance credentials without exposing personally identifiable information (PII), with scoped disclosure capabilities for regulatory oversight.
Core Requirements
Private Verification
Prove KYC/AML compliance without revealing identity details to counterparties or the public
Attestations
Issue and verify accreditation credentials, sanctions screening, and institutional status
Revocation
Update or revoke credentials when compliance status changes without on-chain PII exposure
Regulatory Disclosure
Provide scoped identity disclosure to authorized regulators while maintaining general privacy
Technical Considerations
Zero-Knowledge KYC Proofs
Zero-Knowledge KYC Proofs
ZK-SNARKs enable proving “I am KYC’d” or “I am accredited” without revealing underlying identity data. The prover demonstrates credential possession without exposing the credential itself.
Verifiable Credentials Standards
Verifiable Credentials Standards
ERC-734/735 provide on-chain identity and claims management. EAS (Ethereum Attestation Service) offers a flexible attestation framework. Choose based on interoperability requirements.
Nullifier-Based Revocation
Nullifier-Based Revocation
vOPRF (verifiable oblivious pseudorandom functions) generate unique nullifiers for each credential without linkability, enabling efficient revocation checking without identity correlation.
Crypto-Registry Bridges
Crypto-Registry Bridges
For jurisdictions with digital identity infrastructure (e.g., eWpG in Germany), bridge existing government registries to blockchain attestations while preserving privacy.
Primary Use Cases
Private Authentication & Identity Verification
Prove identity and compliance credentials without exposing PII to counterparties
Identity & Compliance is a prerequisite domain applied across all institutional workflows. Every payment, trade, or asset operation typically requires credential verification.
Approach Documentation
Approach: Private Authentication & Identity Verification
Detailed architectural approach for implementing private identity verification systems
Shortest-Path Patterns
These patterns provide proven implementation approaches for institutional identity requirements:Private MTP Authentication
Merkle tree proof-based identity verification with privacy preservation
zk-KYC/ML + ONCHAINID (ERC-734-735)
Zero-knowledge KYC with standardized on-chain identity framework
Selective Disclosure (View Keys + Proofs)
Grant regulators scoped access to identity information
Verifiable Attestation
Issue and verify credentials with cryptographic guarantees
vOPRF Nullifiers
Privacy-preserving credential revocation without correlation
Crypto-registry Bridge (eWpG) + EAS
Bridge government digital identity systems to blockchain attestations
Adjacent Vendors
Chainlink ACE
Cross-chain identity and compliance verification infrastructure
Integration Across Domains
Payments Integration
Payments Integration
Payment authorization requires KYC/AML verification before transaction approval. Selective disclosure enables regulatory reporting while maintaining counterparty privacy.
Trading Integration
Trading Integration
Trade execution requires accreditation verification and sanctions screening. Zero-knowledge proofs enable compliance without revealing trader identities.
Custody Integration
Custody Integration
Custody operations require identity verification for account opening and transaction authorization. View keys enable regulator access without compromising custody security.
Related Domains
Payments
KYC verification before payment authorization
Trading
Accreditation checks for institutional trading
Custody
Identity verification for custody account access
Compliance Frameworks
AML/CTF Requirements
Anti-money laundering and counter-terrorism financing credential verification
Accreditation Standards
Institutional investor and qualified purchaser status attestations
Sanctions Screening
OFAC and international sanctions list verification without PII exposure
Data Protection
GDPR/CCPA compliance through zero-knowledge verification and selective disclosure