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How Can “Decentralized Identity” (DID) Solutions Potentially Aid DEX Compliance?

DID allows users to prove identity and accreditation to a smart contract without revealing private data to the decentralized exchange itself.
Greeks.Live17.11.25

How Can “Decentralized Identity” (DID) Solutions Potentially Aid DEX Compliance?

Decentralized Identity (DID) solutions, such as self-sovereign identity frameworks built on blockchain, could potentially aid DEX compliance by allowing users to prove their identity and accreditation status without revealing personal data to a central entity. A user could obtain a verified credential from a trusted third party and present this credential to a DEX's smart contract.

The contract could then verify the credential's validity and enforce compliance rules (e.g. only allowing verified users to trade) without the DEX itself ever holding the user's private KYC information.

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