Centralized components and regulated custodians: When users deposit bitcoin (BTC) to receive the wrapped token (BBTC), the underlying BTC is held by regulated institutional custodians, such as Ceffu and Mainnet Digital. These entities have their own Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements, and user funds are monitored for compliance.
Compliance protocols: BounceBit implements its own KYC, Know Your Transaction (KYT), and AML protocols to adhere to global regulatory standards. The platform uses blockchain analytics, often in partnership with firms like Elliptic, to actively monitor on-chain transactions, flag suspicious activity, and create traceable audit records.
Public blockchain transparency: As a public Layer-1 blockchain, the BounceBit network makes all transaction data publicly visible on the blockchain. While this is a common feature of many public blockchains, it means that wallet addresses and transaction details are not inherently private. BounceBit's own privacy policy states that "any personal data shared on the blockchain will become publicly available".
Onboarding and personal data collection: To use BounceBit's services, users provide personal information during the onboarding and registration process, as detailed in the platform's privacy policy. This collected data can include email addresses, wallet addresses, and usage data.
For users who prioritize privacy, these features are important to consider. BounceBit's design, which integrates centralized custodianship and regulatory compliance, makes it fundamentally different from privacy-focused coins that aim for anonymity. Instead, its model is built to attract institutional capital by prioritizing security, compliance, and transparency.