Supporters of the proposal, including compliance experts like Fraser Mitchell of AML provider SmartSearch, argue that such measures could significantly enhance Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance. Critics argue that the proposed measures represent a false dichotomy between privacy and compliance. Alternative solutions, such as zero-knowledge proofs (ZKPs) and decentralized identity (DID) frameworks, offer ways to verify compliance without compromising anonymity.