The Compliance Gap in DeFi

Decentralized finance platforms are revolutionizing global access to financial services, but regulators still require proof of compliance with rules such as anti-money laundering (AML) and know-your-customer (KYC) checks. The challenge? Providing this proof often forces platforms to store and share user identities, creating privacy and security risks.

Lagrange’s DeFi Compliance Proofs

Using zero-knowledge proofs, Lagrange allows DeFi platforms to prove that all users meet compliance requirements—such as passing KYC checks—without revealing personal details to the blockchain or other parties.

Benefits

  • For Platforms: Reduced regulatory risk without losing user trust.

  • For Users: Privacy maintained while still meeting legal obligations.

  • For Regulators: Transparent, verifiable compliance without massive data exposure.

Why It Matters

This model ensures DeFi can grow responsibly, balancing the need for compliance with the ethos of privacy and decentralization. #lagrange @Lagrange Official $LA