” refers to a procedure used by financial institutions to compile data on their customers' transactions in order to determine compliance with anti-money laundering laws. In doing so, it determines whether or not the exchange of money in question is legitimate and free of any ties to illegal activities in the financial sector.
In my view, it is critical for non-custodial wallets to have digital identities and controls to ensure that the application complies with local laws and does not help criminals in laundering proceeds from illegal activities, hacks, or drug smuggling. Digital wallets that focus on privacy by design and compliance may be the future. Even though for many, these two terms may not go hand-in-hand. Applications can be created which are decentralised in nature, comply with local laws as well as protect personal and sensitive data., a web3 company for the DeFi infrastructure that creates interoperability between decentralised and conventional financial systems, has introduced Nexera ID.
Nexera ID is a cutting-edge digital wallet that uses a special digital token known as a MetaNFT to safely store your digital assets and identification information. Users may establish their own rules for the handling of digital assets, the disclosure of personal information, and the performance of wallet operations, such as the activation of recovery mechanisms.