Blockchain technologies offer new opportunities for secure and non-counterfeitable identity platforms and systems. Yet, the decentralized nature of these technologies raises important concerns when it comes to establishing the identities of users. At the same time, the transparency of blockchain technologies introduce new opportunities of surveillance, which might impinge upon the privacy of end-users. A variety of solutions have been proposed so far to address one or the other of the concerns, yet none of them are capable of addressing the legal requirements for anti-money laundering or terrorism financing while preserving essential civil liberties of end-users. Can we develop blockchain-based identity systems that address these critical and often competing concerns?