At the World of Web3 (WOW) Summit in Hong Kong, decentralized finance (DeFi) executives argued that implementing "Know Your Customer" (KYC) measures would not be effective in tackling the issue of hackers laundering stolen funds. During a panel session at the summit on March 29, titled "Blockchain Security to Smart," industry experts shared their opinions about DeFi security and KYC measures.
According to these executives, requiring users to provide personal information for KYC verification is unnecessary as most individuals have nothing to hide. One executive stated that "99% have nothing to hide" and therefore, implementing KYC measures would cause inconvenience without providing significant benefits.
The main concern of the panel was hackers laundering millions of stolen funds into clean money. However, these execs believed that there are other ways to address this issue without resorting to KYC measures.
The use of blockchain technology can provide transparency and traceability which helps identify malicious actors in real-time. Instead of relying on traditional banking systems' methods such as ID verification or credit scores, blockchain's immutable ledger can act as a digital identity solution.
Moreover, some experts also argued that privacy is important for individuals who prefer anonymity when using DeFi platforms. Requiring personal information from users may deter them from using these platforms altogether.
In conclusion, while some believe that implementing KYC measures will enhance DeFi security by preventing money laundering through stolen funds; others argue it is an unnecessary invasion of privacy with little benefit. The discussion continues among industry insiders as they work towards finding solutions for protecting decentralized financial systems while maintaining user privacy and autonomy.