Proof-of-funds compliance keys allow users to choose who to share their private information with. This means that financial information can stay hidden from the public (as it would still appear hidden on the blockchain level), but the report could still be shared with authorized parties.
Put simply, this feature allows you to choose who you provide your transparency to. Providing a compliance key of specific withdrawal addresses would reveal the origins of the deposit which means you can share your information with specific parties on demand. Therefore, you can retain your financial privacy while staying compliant with tax and regulatory bodies.
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