Third-party compliance integrations

Considering the difficulties in developing a decentralized solution that preserves privacy and enables compliance, Panther designed an approach that utilizes three essential components: third-party compliance vendor integrations, Panther Accounts and Zones.
By leveraging the protocol's zero-knowledge characteristics, these elements collectively form a pathway to achieve compliance.
To see the regulatory rationale for Panther integrating compliance tools, please visit our article on these solutions
Panther has built a system that retains neutrality by integrating compliance providers that accept multiple types of verification. These systems are called “multi-compliance vendors”, as they give users the ability to choose from a variety of compliance providers while retaining a decentralized approach.
At v1, there will be just one verification level available for all users.
The Panther DAO has been commissioned to select a multi-compliance vendor that aligns with its interests, a discussion taking place in Panther’s forum. When integrating these providers, the following requirements are taken into consideration:
  • Ability to blacklist PEPs or newly-flagged individuals based on unverified identities.
  • Blacklists for verified EoAs.
  • Ability to perform checks to create an “allowlist” that works on- and off-chain.
  • Preferably, the ability to have an on-chain verification list maintained through oracles/smart contracts.
  • Performing validations at deposit and withdrawal.
  • Optionally, allowing users to register multiple addresses. This is suggested so that users can break the on-chain link between their transactions by withdrawing and depositing from different addresses.
  • Optionally, using a zero-knowledge proof to allow users to create new accounts once they have passed verification.
Within Panther’s solution, compliance providers need to be able to process users’ data without the protocol learning it, proving a user’s ownership of their wallet and giving them a zero-knowledge proof that attests to the validity of their statements. This allows users to access Panther but maintains the protocol’s neutrality. The diagram below exemplifies this process:
Panther’s flow for user verifications.