We explored the issue of KYT for ckETH and our conclusion was to not delay deployment by introducing a full blown KYT. It may be interesting to know that one of the factors that played a role in this decision was that exchanging ETH without KYT is the rule rather than the exception in the wider blockchain space.
Nonetheless, the first version of the ckETH canister
- Implements the OFAC blacklisting
- Provides full traceability and transparency of transactions within ckETH
so it provides some basic protection for legitimate ckETH holders.
We plan to hand over control of ckETH to the NNS. That means that if the voters believe that KYT should be added to ckETH, this is possible in a future upgrade.