I am incredibly concerned about it, (hopefully I’m not being limited in thinking here), but there are only a few solutions I see to this:
- Leave the ADA Ecosystem for the closest alternative
- Cloning ADA without AML/KYC but need a trusted team to avoid being dead on arrival (Opt. peg cloned ADA to ADA’s value) “Would be ADA’s Shadow”
- Creating some form of Wallet/Mixer/Trustless Exchange that anonynmizes ADA data w/o leaving Ecosystem
- Create a Privacy Altcoin on ADA with anonymity built in, that is pegged to ADA 1:1, (Would have to be private even to the ADA wallet, unsure how it would work) – ideally a second Altcoin pegged to Fiat would be implemented in this system.
In addition relying less on actual Cryptoexchanges and creating a P2P network to sell ADA through a local marketplace exchange (or) making DEXes (Decentralized exchanges) easier to access and use, by making them more like Trustless Exchanges where you swap ADA on it. (This requires developers working to make better DEXes, ideally DEXes should move towards being as easy as kyberswap or pancakeswap to use – this is the only way I could use DEXes as the current way is frustrating). To exchange ADA for ‘fiat’ would require a bank account which comes with issues, but utilizing something like DAI Eth-based or an ADA-based stablecoin, wouldn’t be a bad idea. (My thoughts get cloudy at this point, someone smarter than me would have to refine that bit, as at some point your money ‘has’ to enter the KYC/AML realm, but who knows how that will work).
Of the options listed 3 and 4 are the most realistic as these two keep you in the ADA ecosystem, without the same hard work associated with 2 (the most unrealistic option), and without the loss associated with 1 (where loss is defined as, there is no coin like ADA on the market right now that has the ability to increase in value to the same extent that ADA will).
In the case of John Doe transactions listed in 3 and 4. It would require a way to get your money OUT of the system, as it would carry the same challenges as Monero (XMR) as sending amount to an exchange would risk coins being ‘seized’ until providing identity documents, and/or proving source of funds etc. Which may or may not be a bad thing depending on how you feel about it. That’s where DEXes being made to be easier for layman to work with come in, making them more like Trustless Exchanges. Another thing to consider is that it is now becoming ‘illegal’ to sell cryptocurrency p2p on a local level and utilizing a trustless exchange by a decentralized entity, that is as easy as kyberswap/pancakeswap perhaps using “Unstoppable domains” would be the solution to that.
Those are just my thoughts. I don’t know how realistic it is though.
Edit: If the creators can create a Proof-of-burn App for Cardano, why not a Privacy App be it in the form of a Wallet, Trustleses Exchange, or Trustless Mixer, that protects identity. However blocking ADA from being able to seize or freeze your assets might be harder to do, if not impossible without an altcoin or alternative chain (uncertain). This is assuming that ADA’s AML compliance means that it is building into it’s system seizure abilities (how is this possible if ADA is decentralized…?) the only way I can think of is if they program ADA so that it doesn’t unlock coins that don’t have KYC/AML compliance, blacklisting transactions of your ADA and causing it to be ignored on the blockchain?