PII Masking is a data security technique that obscures personally identifiable information (PII) to protect privacy while maintaining data utility for analytics, testing, or development. Within crypto systems, this applies to transactional data, user account details, or KYC/AML records, ensuring compliance with data protection regulations without compromising system functionality.
Mechanism
The mechanism involves replacing sensitive PII fields with fictitious or anonymized data, or transforming it through cryptographic hashing, tokenization, or substitution methods. The original PII is either permanently altered or stored separately under strict access controls, allowing only authorized personnel to reverse the masking process, if at all.
Methodology
The strategic approach mandates identifying all data fields containing PII, classifying their sensitivity, and selecting appropriate masking techniques that balance data protection with operational requirements. Implementing robust PII masking protocols is essential for maintaining regulatory compliance, reducing data breach risks, and enabling secure development and testing environments within institutional crypto trading platforms and related financial services.
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