New White House standards strategy could have implications for crypto industry KYC

The medication of United States President Joe Biden released a nationalist standards strategy for captious and emerging technologies connected May 4. The strategy stated that the United States would prioritize standards improvement successful 8 areas. Among the prioritized areas are “digital individuality infrastructure and distributed ledger technologies, which progressively impact a scope of cardinal economical sectors.” 

“Distributed ledger” is simply a synonym for blockchain. Digital individuality is “the unsocial practice of a taxable engaged successful an online transaction,” according to a National Institute of Standards and Technology (NIST) papers present nether review. Digital individuality is “unique successful the discourse of a integer service, but does not needfully request to uniquely place the taxable successful each contexts,” the papers added.

NIST is the national bureau that coordinates authorities standards activity.

One evident usage of integer individuality successful economical sectors is Know Your Customer and Anti-Money Laundering (KYC/AML), wherever blockchain solutions are being actively developed arsenic regulators and enforcement agencies demand greater AML compliance successful the United States and astir the world successful the crypto industry.

Related: Europe’s integer ID wallet — Easy for users oregon a information privateness nightmare?

Innovations specified arsenic zero-knowledge KYC verification, based connected the blockchain’s statement mechanism, person been projected to transportation AML verification, recognition scoring and akin information. Passporting techniques using soulbound nonfungible tokens (NFTs) person been deployed to marque off-chain individuality accessible.

The White House has released an updated database of Critical and Emerging Technologies (“CET List”), which volition service to pass a forthcoming strategy connected U.S. technological competitiveness and nationalist security.https://t.co/xyesCD5PFP

Privacy issues are profoundly intertwined with integer individuality and are areas wherever the authorities and crypto manufacture have yet to scope accord.

The extremity of the strategy is to support U.S. consumers and the country’s relation successful processing planetary standards, the White House said. The strategy volition bolster concern successful “pre-standardization research” successful the cardinal areas identified, promote private-sector and world information successful that research, put successful grooming and guarantee integrity and inclusivity.

The Treasury Department’s Office of Financial Research leads the government’s work connected integer identity, integer assets, and distributed ledger exertion successful national and planetary agencies.

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