This page may contain stale information. Last updated: 2026-06-24
Definition
Know Your Customer (KYC) is the regulatory process of verifying customer identity before providing financial services. Traditional KYC requires institutions to collect and store full identity documents, creating large databases that become breach targets.
Key Points
- Privacy-preserving alternatives: zero-knowledge-proofs enable attribute verification without full document exposure (starkware Private KYC demo, June 2026)
- NFC passport scanning: Local device verification of document authenticity before encryption
- Self-custody model: User retains encrypted identity in wallet vs centralized biometric stores
- Regulatory tension: Adoption requires legal review, verifier trust, and security testing