Soda Labs

Ireland

A central bank piloting zero-knowledge KYC

JurisdictionEuropeBuilds with privacy tech

The regime itself mandates, pilots or funds privacy-preserving technology.

What Ireland actually says

Ireland adds nothing of its own to the EU rules on crypto confidentiality, and that is worth saying plainly rather than inventing local colour. What makes it worth a card is the opposite move. Its central bank ran its first innovation sandbox specifically on financial crime, and one of the seven projects put zero-knowledge proofs to work inside the compliance process itself: verifying a customer's name and address in real time against authoritative national datasets without revealing or transferring the underlying data. That is a supervisor hosting a live pilot of exactly the technique this section argues is compatible with regulation, inside the very programme aimed at money laundering. Very few of the accommodating signals elsewhere in this section are that concrete.

The instruments that matter

Innovation Sandbox Programme on combatting financial crime
launched by the central bank in December 2024 as a six-month programme, with a first cohort of seven ventures
A live zero-knowledge KYC pilot
Sedicii and Permanent TSB built real-time name and address verification using zero-knowledge proofs, with a utility acting as the address data authority
What it demonstrated
customer details were validated against authoritative national datasets without revealing or transferring the underlying personal data, removing the need for paper utility bills
No national divergence on confidentiality
we found no Irish restriction on anonymity-enhancing assets and no national rule on self-hosted wallets; on those questions Ireland applies the EU baseline

What this means for confidential transactions

Bubble is built for exactly this shape of obligation: amounts and balances live on chain as ciphertexts, computation happens without decryption, and the only disclosure path is an on-chain access list through which an authorized party - an auditor, a supervisor, a counterparty - can request scoped decryption. That is confidentiality from the public, not from the regulator.

Compliant by default.

See how selective disclosure satisfies a supervisor without publishing your book to the world.