Hester Peirce, a prominent pro-cryptocurrency commissioner at the U.S. Securities and Exchange Commission, criticized the inefficiency of the current Know Your Customer (KYC) system and financial surveillance framework, urging a transition to crypto-technology-based regulations. She stated, "The existing AML/KYC system, which collects personal information indiscriminately, has a negligible effect on preventing crime while only increasing the risk of data breaches." As an alternative, she mentioned Zero-Knowledge Proof (ZKP) technology, proposing a method that precisely verifies eligibility conditions such as identity, nationality, and accredited investor status without exposing original personal information. She added that by utilizing the transparent and auditable record-keeping capabilities of public blockchains, financial transparency can be secured while minimizing the storage of unnecessary sensitive information.
