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GenAI could make KYC effectively useless
(techcrunch.com)
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this post was submitted on 09 Jan 2024
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Good.
KYC is an invasion of privacy.
I mean, that's the entire point, yes. Some financial transactions, at some level of scale, should not be private.
For instance, if you abolish KYC, you've just fully legalized all insider trading. Perhaps you can see that there are some conflicts of interest there. On the crypto side, KYC allows the IRS to go after traders for capital gains tax. Without it, crypto would be an easy way for the ultra-wealthy to just completely bypass taxes, since you couldn't prove that it belonged to them.
It also prevent money laundering for drug cartels, terrorist cells, and rogue states/agencies. Obviously those organizations still find a eay to move money around, but it isn't cheap nor easy for them.