Decentralized finance (DeFi) executives at the World of Web3 (WOW) Summit in Hong Kong have discussed the implementation of Know Your Customer (KYC) measures to tackle Anti-Money Laundering (AML) issues in the industry. During a panel session on March 29, titled “Blockchain Security to Smart Compliance: AML & KYC Solutions in DeFi,” industry leaders said that hackers laundering stolen funds into “clean money” was the “biggest issue” in DeFi. They argued that KYC could help address the problem. Dyma Budorin, CEO of smart contract auditing firm Hacken, warned that hackers could easily steal millions of dollars and launder the funds into various wallets, making it difficult to track the source of the funds.
While KYC is about transparency and accountability, Victor Yim, the head of fintech at Cyberport, suggested that KYC alone wouldn’t solve all AML problems as money laundering still occurs daily in traditional finance where KYC measures are common. Alexander Scheer, the founder of zkMe, said that the DeFi industry should take the lead and “front run” regulations before they are imposed by regulators.
