AML and KYC
As DeFi applications become more and more mainstream, it certainly raises more and more regulation and compliance concerns from governments all over the world. The blockchain and cryptocurrency community should be prepared to work with financial regulators and develop solutions to address such thorny issues.
One that's close to watch is the Anti-Money Laundering (AML) law. According to Sec.gov (https://www.sec.gov/about/offices/ocie/amlsourcetool.htm#3), financial institutions are required to establish an AML program, which is a formal program within the institute that establishes reasonable policies, procedures, and internal controls to comply with Bank Secrecy Act rules. They also need to set up risk-based procedures to know ...
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