ZkSync’s KYC requirements aim to ensure regulatory compliance but raise privacy concerns. Participants must submit personal data, potentially exposing them to breaches or surveillance. This deters privacy-focused users, reducing participation. However, KYC aligns with anti-money laundering laws, fostering trust among regulators and institutions. Balancing privacy and compliance is tricky—zkSync could adopt zero-knowledge proofs to verify identity without storing data, preserving anonymity while meeting legal standards. The trade-off limits inclusivity but enhances legitimacy.