SEC Commissioner Hester Peirce urged regulators on September 23, 2026, to use zero-knowledge proofs and digital credentials to run KYC checks while collecting less personal data.

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Nym CEO Harry Halpin criticized the crypto wallet disclosure rule in Amendment I-CF821, citing a case where a French tax agent allegedly sold crypto holders' tax data to criminals

Polygon Labs' Open Money Stack U.S. payments business is registered as a money services business with the Financial Crimes Enforcement Network (FinCEN)

Coinme agreed to a $2.5 million settlement with 34 state regulators on October 8, 2026 over alleged Bank Secrecy Act and anti-money laundering failures.

The Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation issued a final reputation-risk rule on April 7, 2026, prohibiting supervisors from using anti-money laundering concerns as a pretext for reputation-risk supervision.

A7 International utilizes an AI-driven compliance and routing system to analyze sender, beneficiary, and jurisdiction risk factors to select optimal payment paths.

U.S. FinCEN reported that entities operating as A7 Sub-Agents processed over $17 billion in transactions between January 2025 and June 2026.

StarkWare demonstrated a Private Know Your Customer system on June 23, 2026, using zero-knowledge proofs on mobile devices to verify identity criteria without exposing full passport documents.

StarkWare announced the launch of Shadow Accounts on October 13, 2026, allowing decentralized finance users to create persistent, application-specific identities without exposing links to their primary crypto wallets.

StarkWare introduced its STRK20 privacy framework on June 9, 2026, providing zero-knowledge shielded balances, private transfers, and viewing keys for auditing ERC-20 assets on Starknet.

StarkWare launched OffMarket, a privacy service that enables users to trade on Polymarket without publicly linking their trading positions to their primary accounts.

Financial Privacy Inc. holds OffMarket's master viewing key in a secure enclave under a multisignature arrangement with StarkWare, screening deposits against sanctions and reviewing legal requests for transaction data.

When withdrawing from a Starknet Shadow Account, funds return to shielded STRK20 balances using zero-knowledge proofs managed by a Starknet wallet

Starknet Shadow Accounts allow users to manage decentralized finance positions without publicly linking their application activity to primary cryptocurrency wallets.

StarkWare launched Shadow Accounts on the Ethereum layer-2 network Starknet on October 13, 2026, introducing persistent application-specific identities.

VersaBank's VUSD tokenized deposits incorporate technology enabling regulators to freeze, seize, and burn deposits identified as participating in illegal activities.

Zhimin Qian pleaded guilty to money laundering offenses in September 2025.

OffMarket cannot mask public transaction sizes, order prices, execution timing, or public USDC pool transfers, which can potentially expose trader identities during low liquidity periods.

Shadow Accounts maintain persistent onchain addresses across multiple transactions with a specific application, while leaving account balances and transaction histories publicly visible on blockchain explorers.

Starknet's Shadow Account balances and transactions remain publicly visible on the blockchain, but the connection to a user's primary wallet address is obscured

Starknet Shadow Accounts hold public ERC-20 tokens, allowing blockchain observers to examine transaction histories once a specific Shadow Account address is identified.