Coinbase has encouraged American legislators to modernize the Bank Secrecy Act (BSA) by including Nulkennis tests (ZKPS) in the country’s financial compliance framework.
In a August 4 rackCoinbase’s Chief Legal Officer Paul Grewal argued that ZKPS could improve financial transparency and at the same time protected the privacy of consumers.
Why zero knowledge certificates?
According to him, the existing knowledge of the know-Your-Customer (KYC) is imposed by the BSA security risks, because it is often stored in large, centralized databases that are vulnerable to cyber attacks.
Although he noticed that the information collected often remained unused, he pointed out that they remain an attractive target for criminals.
In view of this, he argued that ZKPs offer a new solution with which users can prove specific details – such as their identity or age – without disclosing the underlying data.
According to him:
“In financial cases you could open a new account at a company such as Coinbase without sharing for decades of personal data, instead with ZKPs to prove that you are not sanction lists, you are not a minor, etc. And if the law enforcement wanted detailed information about the customer, they could subject the company that the ZKP has issued.”
Grewal also emphasized that ZKPS could transform the way how financial institutions share information with government agencies.
By automating the transfer of necessary data points for specific transactions, regulations can ensure compliance and at the same time minimize the exposure of sensitive consumer data. This system would also reduce unnecessary data aggregation, which is currently at risk of jeopardizing millions of privacy of the authority -abiding citizens in an attempt to follow a small number of abuses.
‘Buy the Dip’
Coinbase’s advocacy for crypto-related technology coincides with market analysts who describe the recent fall in the stock market as a chance for long-term investors.
In a note of 4 August for investors shared with CryptoSlateMark Palmer, a senior research analyst at Benchmark, attributed the decline to traders in the short term who responded to the weaker than expected Q2 results.
However, Palmer believes that this presents a strategic access point for investors with a longer investment horizon.
He identified various reasons why Coinbase remains well positioned for future growth, including the similarities with Circle to take advantage of USD Coin (USDC) adoption, the growing Prime Brokerage platform and its growing influence in the institutional crypto-space.
In addition, Coinbase’s ambitious development of a “super app” that can become trade, payments, Defi, NFTs and more combines a unique offer on the American market.
Moreover, Palmer noted that Coinbase’s integration of Dexs into his platform enables users to trad in a wider range of tokens. With these developments, Coinbase positions itself for persistent growth and increasing crypto acceptance.
Given this, repeated Palmer’s ‘buy’ recommendation for Coinbase shares, with a target price of $ 421.
