Comment by ryuhhnn
12 hours ago
There are very good reasons for KYC, the problem here is not the government regulation, it's once again private companies being sloppy with their customer's data because sloppy is cheap and it's not their info on the line, it's yours, so there's little motivation for them to safeguard it _unless_ they're compelled to do it by law.
The people who designed a government regulation to deputize private companies couldn't possibly have known how sloppy private companies are with other people's data?
They could have designed KYC to minimize long-term storage requirements etc at some cost to what they could enforce, but a government like the US is inherently sloppy with the rights that are reserved for parties besides itself.
I think if I coloured it as [gov't] deputizing [companies], and prioritized financial banks not knowing their customers, in case they decide they get hacked, I could sort of get excited about blaming regulation.
At the end of the day it'd be hard for me to continue holding that because, on the balance, we expect companies to keep data private and to not enable illegal activity, not gov't to avoid asking companies to do things, lest they screw up.
This is costing Coinbase $400M. They are well incentivized to prevent this.
They're not just another free-to-use site where you're the product. Their reputation and viability are on the line.
For a site such as this the odds aren't in their favor anymore.