Privacy and accountability can coexist onchain, say panelists at Consensus Miami

At CoinDesk's Consensus Miami conference, panelists from Moody's Ratings and ChangeNOW discussed how to reconcile the transparency of public blockchains with user privacy. They proposed an "intelligence layer" combining hybrid blockchain architecture and wallet-address-level monitoring. This approach splits tasks: private permissioned networks offer institutions accountability, while public permissionless chains provide liquidity. Blockchain forensics tools can screen transactions at the address level without automatically linking users to real-world identities. Rajeev Bamra of Moody's Ratings highlighted the need for an intelligence layer to answer "Who is it? What are they doing? And can I trust the record?" He predicted a hybrid blockchain future, with private networks offering credibility and public ones liquidity. Pauline Shangett of ChangeNOW emphasized user privacy, stating that while their non-custodial exchange doesn't enforce KYC by default, they use AML providers and blockchain forensics to monitor flows at the wallet-address level. This allows them to provide transaction data to law enforcement without revealing user identities, enabling registration-free swaps while maintaining internal accounting and cooperating with authorities on illicit funds. Regarding regulation, Bamra noted convergence in intent but fragmentation in execution across different frameworks like the EU's MiCA and the U.S. GENIUS Act. Shangett suggested that liability should rest with entities involved in asset emission rather than transmission.

(Source：CoinDesk)