6.5 Compliance-Driven Blockchain with Zero-Knowledge Proofs

LQDTY is one of the few Layer 1 blockchains designed with built-in compliance mechanisms, allowing enterprises and institutions to meet regulatory requirements without compromising user privacy.

Compliance Features Enabled by ZKPs:

• AML and KYC Enforcement: LQDTY enables dApps to enforce Know-YourCustomer (KYC) and Anti-Money Laundering (AML) requirements using ZeroKnowledge Proofs (ZKPs).
• Investor Accreditation Verification: The blockchain supports investor accreditation validation for retail and institutional investors, including:
  1. 506(b) & 506(c) investors
  2. Qualified Institutional Buyers (QIBs)
  3. Qualified Purchasers (QPs)
• Sanctions and PEP Screening: Ongoing PEP (Politically Exposed Persons) and sanctions screening are validated through ZKPs, ensuring compliance without revealing personal data.

Why Compliance Matters in Blockchain:

• Institutional Adoption: Compliance-ready blockchains like LQDTY make it easier for banks, hedge funds, and enterprises to participate in blockchain-based finance.
• Regulatory Safety: Prevents fraudulent activity while protecting user privacy, balancing decentralization with legal compliance.

LQDTY enables trusted transactions and enterprise-friendly blockchain adoption by implementing Zero-Knowledge compliance frameworks.