The current Know Your Customer (KYC) ecosystem is largely built on centralized systems, which are vulnerabletodatabreaches, incur high operational costs, and often require customers to repeat verification steps unnecessarily [1], [2]. Suchcentralizeddesigns concentrate sensitive data in single repositories, creating “honeypots” that conflict with modern data privacy standardsliketheGeneral Data Protection Regulation (GDPR) [3], [4]. At the same time, the transparent nature of public Distributed Ledger Technology(DLT) presents challenges for maintaining privacy in financial transactions, giving rise to what is often called the “Blockchain-PrivacyParadox” [5]. This survey explores cutting-edge DLT-based solutions that integrate Self-Sovereign Identity (SSI) andZero-KnowledgeProof (ZKP) techniques. Key challenges in current approaches include scalability limitations in certain permissionedblockchains[6],inadequate mechanisms to fully support GDPR’s Right to Erasure [3], [4], [7], and the absence of reliable protocols to ensurelegalaccessfor Anti-Money Laundering (AML) compliance when users are uncooperative [8], [9]. Keywords:Index Terms Blockchain, Zero-Knowledge Proofs, KYC, Privacy Preservation, Decentralized Identity, IPFS.