Privacy vs. Regulation, The False Choice

Too often, builders think: either expose all PII for compliance or keep everything private. That’s a false choice.

Most people think privacy and compliance are opposites. They’re not.

The Risks

• Overexposure of PII: Data breaches or blockchain leaks.

• GDPR violations: Fines and loss of EU market access.

• User mistrust: Institutions won’t onboard if data control is weak.

Why This Matters

Institutional adoption depends on privacy-preserving compliance. No bank will onboard if customer PII leaks to a public ledger.

The Solution: ZK + Selective Disclosure

flowchart LR
    A[User KYC docs] --> B[Vault Commitments]
    B --> C[ZK Proof: Is EU Citizen?]
    C --> D[dApp Policy Engine: Yes/No]

• Vault Commitments → Hash and commit raw KYC data off-chain.

• ZK-Proofs → Prove eligibility (e.g. EU citizenship) without revealing passport.

• Selective Disclosure → Reveal only what’s required (e.g. “Over 18”).

Privacy-by-Design Compliance

1. Minimize → Store only proofs, not data.

2. Control → Users own their credentials.

3. Prove → Share only cryptographic attestations.

4. Revoke → Support ongoing compliance without leaks.

Takeaway: Privacy is not the enemy of compliance. It’s the foundation for institutional trust.