Exchange CEO – The Lack of KYC and AML is BRC-20’s Biggest Risk
CoinEdition
Published May 28, 2023 04:19AM ET
Updated May 28, 2023 04:30AM ET
Exchange CEO – The Lack of KYC and AML is BRC-20’s Biggest Risk
- The biggest risk for the BRC-20 DEX will be the risk of compliance.
- OKX CEO says the risk will border around the DEX accepting deposits without any KYC or AML control.
- The BRC-20 team acknowledged the need to implement KYC as a tool to promote trust.
The OKX CEO, with Twitter handle Star, has said that the most significant risk for the BRC-20 decentralized exchange (DEX) will be the risk of compliance. According to Star, that risk will border around the DEX accepting deposits without any KYC or AML control.
BRC-20 is an acronym for Bitcoin Request for Comment 20. It is a newly launched token standard on the Bitcoin network powered by Bitcoin’s Taproot upgrade. The recently launched protocol enables the inscription of Ordinals. Users consider The BRC-20 as Bitcoin’s version of the ERC-20 token standard on the Ethereum network.
Although BRC-20 tokens use ordinals, not all ordinals are BRC-20. Hence, the number of BRC-20 tokens that currently exist is small compared to the millions of ordinals available on the Bitcoin network.
Earlier today, the BRC-20 team announced that users can now have their AirDrop eligibility using OG wallets. According to the team, that is the only category of wallets currently registered on the protocol. BRC-20 is yet to register ALPHA and Zealy members.
The team also requested that users submit only wallet addresses used to make purchases during the IDO.
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