[Medium Spender] Open-source KYT on Dot #1083

Hi Polkadot,
I'm DonDiegoSanchez, Head Ambassador & ChaosDAO co-founder.
I'm happy to present you this proposal I've been working on with Scorechain for the last few months.

As the co-founder and compliance officer of Kamea Labs, a French regulated crypto asset service provider about to launch a "crypto-banking" app in 36 countries, I can see the (very high) value such a proposal would bring to the ecosystem.

Along with other regulated companies; Kamea Labs wants to provide payment solutions or Defi based services and products to the masses. This is something we can easily do with Bitcoin, most EVMS and Solana, but not with Polkadot. We don't have proper KYT (Know Your Transaction) providers, which are mandatory in all AML-CFT policies, a key to accessing the institutional and retail markets.

Indeed, this is a major barrier to the emergence of any serious financial use case secured by Polkadot or its massive distribution and promotion. The current lack of traction and alleged technical barriers to entry have forced most of these providers to classify Polkadot as a 'Tier 2 network'... This saddens me.

That's why I've been working with Scorechain, my current KYT provider, to come up with a realistic, Ethos-friendly, open-source and fair proposal that will allow the entire Polkadot ecosystem to benefit from a future-proof KYT solution and open its doors to full-scale financial products, services and operations secured by Polkadot.

For a medium spender of 508k $USDC this proposal aims to :

• Create the Polkadot Connector, an open source tool that allows any KYT provider (such as Scorechain, AMLBot or Chainalysis) to benefit from an easy-to-use, cross-ecosystem, transaction and value transfer analysis solution. This will enable them all to provide compliance solutions for regulated actors but also allow any parachain to self-onboard.
• Maintain the Polkadot connector for 3 years;
• Provide full KYT coverage for the Relay chain and the most active parachains, through Scorechain, enabling regulated actors to offer financial services secured by Polkadotbefore the end 2025.
• Provide this KYT coverage for free for one year to all of its current customers (CACEIS, DZ Banks and other major financial actors)
• Provide 15 free licences to the HA and BD team to distribute to financial actors building products and services secured by Polkadot.
• Integrate Polkadot in Scorechain's marketting and launch a dedicated campaig about the coverage.

Here you can find the full proposal : Treasury Proposal: Open-source KYT on Dot

I invite token holders to do their due diligence on Scorechain's ethos, compliance statements and relationship with web3 and the open source world. That’s why I originally chose them as my KYT provider.

DonDiegoSanchez

Side note : identity was originally set on the pure-proxy of the multisig, but we decided to use the multisig to receive the fund as we’re requesting USDC on Asset-Hub and it was the easiest thing to do.