At the World Network 3 (WOW) conference in Hong Kong, Defi executives felt that implementing the "know your customer" (KYC) strategy would address the "bigger problem" in decentralized financial industry (Defi), where hackers laundered millions of stolen money into "clean money".

At a panel meeting entitled "blockchain Security to Intelligent Compliance Management: AML and KYC Solutions in Defi" held on March 29th, industry leaders applied KYC in Defi as a solution to AML problems.

Dima Budolin, CEO of Hacken, a smart contract financial audit firm, warns that specialized tools that hackers can use anytime, anywhere have become so popular that they can be used to "clean up" funds stolen from Defi services, which he says is also a "big problem" for the industry.

He explained that hackers could easily steal millions of dollars and clear the money into these wallets "to make clean money again", making it harder and harder to track where the money came from.

"KYC is about openness and accountability. I don't think it's going to be a big problem for most people. I'm sure 99% of people have nothing to hide. I am very glad to see it become a part of the world.

However, Yan Weide, head of Internet finance at Cyberport, a business incubator in Hong Kong, China, says that KYC alone cannot solve every problem of subacute myelocytic septicemia.

Yim explained that even if the KYC response highlights the traditional financial industry, "there is still a money laundering theme every day."

But he firmly believes that KYC's move will also create a "better tomorrow" for the Defi industry, adding that it can only be won by groups that work hard, including "regulators, current policies, bureaux and other participants".

Yim cited the concept of "secret name traceability system" as an example of achieving a balance between group polarization and compliance, and I will maintain my secret name unless required by law enforcement agencies. This, he added, would "protect the good while still catching the bad".

Alexander Scheer, founder of ZkMe, noted that different types of solutions should adopt different systems, such as login password switching valves "must be very different solutions" to define front and channel and trade.

Scholl also mentioned regulation, stressing that the defi sector should actively take the lead before regulators impose regulation, and pre-empt the game before regulators implement regulation.