US Treasury dey find on-chain ID checks for DeFi to stop crypto crime
US Treasury don start public talk about putting on-chain ID checks for DeFi platforms make dem fit strong KYC plus AML compliance. People wey get stake fit send talk till October 17, 2025. The plan be say digital ID systems – from government ID to biometrics and portable credentials – go verify user identity directly inside smart contract code. If dem put on-chain ID checks, DeFi protocols fit find and stop bad transactions like money laundering, sanction waka, and terror financing before e happen. The department wan reduce compliance cost and make privacy better than old off-chain methods. The talk also dey cover how to use AI, APIs, and blockchain analytics plus how to balance developer wahala and civil liberties. Big gbege dey for data handling, system cross-check and how to involve people wey no get standard docs or bank accounts. Treasury go gather all the responses and fit drop new rules or guide for digital asset control. This one follow SEC recent plan to update digital asset oversight. The waya fit change how DeFi compliance be, affect how market dey and how platforms go grow.
Neutral
Di US Treasury proposition to put on-chain ID checks inside di system dey bring regulatory clarity but e go add compliance costs for DeFi. For short term, developers fit face more development load to implement digital identity systems, e fit slow down transaction volumes and reduce speculative trading. But long-term benefits of standard KYC/AML integration fit attract institutional investors and support sustainable growth. Historical example na di introduction of ‘travel rule’ for exchanges first increase compliance burdens but e end up help market accept am more. So, even though some traders fit see am as wahala, di overall market response likely balance security plus implementation cost.