It's time to fix the 50-year-old KYC/AML regime Last week, @iampaulgrewal and @coinbase sent a letter to the Treasury Department, laying out a plan to update archaic AML rules with modern technology. It would give significant protections to consumers and stop companies from having to store honeypots of sensitive user data. There's three steps to the plan: 1. Decentralized ID and ZK Proofs Update the Bank Secrecy Act to explicitly allow decentralized ID and zero-knowledge proofs as acceptable verification. ZK lets you verify a user's identity while maintaining their privacy. Law enforcement could get access to the underlying data via subpoenas to the issuer. At @SuccinctLabs, we’re making this plug-and-play with an API that integrates with wallets and issuers. 2. AI and APIs Use AI for fraud detection and anti-money laundering and use secure APIs to share sanctions and risk signals in real time, so bad transfers are blocked before settlement. Modern software already runs on APIs; we can use them to make compliance faster, cheaper, and more precise. 3. Onchain Analytics Treat public blockchain data as compliance input. Instead of just "knowing your customer", you'd "know the transaction", shifting reliance on static, simple rules to dynamic, ongoing monitoring of onchain activity. Blockchains are much better sources of transaction data than anything we have in traditional finance. Use them. We have the technology. We don't have to live in the 20th century anymore. Fix KYC now!