Alternate CEO – Lack of KYC and AML Is Largest BRC-20 Danger

  • The most important danger of BRC-20 DEX is compliance danger.
  • The OKX CEO stated the dangers lie round DEXs accepting deposits with out KYC or AML controls.
  • The BRC-20 workforce acknowledged the necessity to introduce KYC as a device to advertise belief.

The CEO of OKX, whose Twitter deal with is Star, stated probably the most important danger for a BRC-20 decentralized change (DEX) could be compliance. Star stated the chance could be adjoining to his DEX accepting deposits with out KYC or his AML controls.

Star seen that the BRC-20 DEX doesn’t help good contracts. As an alternative, the protocol requires customers to deposit crypto tokens in a centralized pockets earlier than swapping. Then ship the token to the consumer’s pockets.

The BRC-20 workforce thanked Starr for his observations via its official Twitter deal with. The workforce defined that its working mannequin is much like what you get with a centralized change. He additionally acknowledged the necessity to implement KYC to advertise belief. The workforce tweeted:

“Certainly, Bitcoin doesn’t help good contracts. It makes use of the identical technique that central exchanges use to course of withdrawals and deposits by way of APIs that management scorching wallets. It is what we do to foster belief.”

BRC-20 is an acronym for Bitcoin Request for Remark 20. It is a newly launched token normal on the Bitcoin community, powered by Bitcoin’s Taproot improve. A not too long ago initiated protocol permits the outline of ordinal numbers. A consumer sees BRC-20 because the Bitcoin equal of his ERC-20 token normal on the Ethereum community.

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BRC-20 tokens use ordinals, however not all ordinals are BRC-20. Due to this fact, the variety of BRC-20 tokens at the moment in existence is small in comparison with the hundreds of thousands of ordinal numbers out there on the Bitcoin community.

Early this morning, the BRC-20 workforce introduced Customers can now purchase AirDrop entitlements utilizing their OG pockets. In response to the workforce, that is at the moment the one class of wallets registered with the protocol. BRC-20 has but to enroll ALPHA and Zealy members.

The workforce additionally requested customers to solely submit pockets addresses used for purchases throughout IDO.


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