Sanctions in Real Time: Why Revocation Matters?

Static KYC is dangerous. If a wallet passes KYC in 2023 but gets sanctioned in 2024, protocols without revocation are exposed.

A KYC done once is a risk forever.

The Risks

  • Outdated KYC: Users change circumstances.

  • Sanctions evasion: Bad actors slip in after initial screening.

  • Expired credentials: Passports expire, licenses lapse.

Why This Matters

Institutions require continuous compliance. One gap can taint an entire pool.

The Solution: Continuous Compliance Lifecycle

flowchart TD
    A[User Credential] --> B[Epoch Revocation Check]
    B -->|Revoked| C[Access blocked]
    B -->|Valid| D[Access granted]
  • Epoch-based revocation → Proofs expire after fixed intervals.

  • Rolling sanctions lists → Protocols query updated negative attestations.

  • Issuer-managed expiry → Credentials tied to validity periods.

Framework: Continuous Compliance

  1. Issue → Credential minted.

  2. Monitor → Periodic re-checks.

  3. Revoke → Negative attestations if status changes.

  4. Audit → Proof of compliance lifecycle.

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