Identity theft incidents involving Revolut have renewed attention on the risks of conventional know-your-customer procedures, according to Cointelegraph. The issue is not only how companies confirm a customer’s identity, but also whether they need to retain copies of identity documents after verification. Zero-knowledge technology is presented as a possible alternative. It could allow a company to establish that a person meets an identity requirement without receiving or storing the underlying documents themselves. That approach could reduce the amount of sensitive personal information held by platforms, while preserving the ability to complete identity checks. However, the technology has not become standard practice. The debate now focuses on what is preventing broader adoption and how identity verification could be redesigned to limit exposure to document theft. The discussion is relevant to digital-asset platforms and other services that rely on KYC controls.
