How Can Decentralized Autonomous Organizations (DAOs) Comply with KYC/AML?
DAOs face significant challenges in complying with KYC/AML because they lack a central legal entity or responsible party. Compliance is often attempted through "front-end" measures, such as requiring KYC checks on the initial token sale or through centralized interfaces that interact with the protocol.
However, the decentralized core of the protocol remains difficult to regulate. Regulators are still debating how to assign legal liability and enforce compliance within fully decentralized structures.