← Back to context

Comment by egorfine

2 days ago

A KYC provider is a company that doesn't start with neutral trust. It starts with a huge negative trust.

Thus it is impossible to believe his words.

9 comments

egorfine

Reply
jcheng  2 days ago

Can you say more? Why isn't it neutral or slightly positive? I would assume that a KYC provider would want to protect their reputation more than the average company. If I were choosing a KYC provider I would definitely want to choose the one that had not been subject to any privacy scandals, and there are no network effects or monopoly power to protect them.

  • egorfine  2 days ago

    > Why isn't it neutral or slightly positive?

    Because KYC is evil in itself and if the linked article does not explain to you why is that then I certainly cannot.

    > KYC provider would want to protect their reputation more than the average company

    False. It is exactly the opposite. See, there are no repercussions for leaking customers data, while properly securing said data is expensive and creates operational friction. Thus, there are NO incentives to protect data while there ARE incentives to care as less as possible.

    Bear in mind that KYC is a service that no one wants, anll customers are forced and everybody hates it: customers, users, companies.

    • chowells  2 days ago

      I want KYC. I want AML. I want reversible transactions. I also want all of those things to be well regulated by a responsive and reasonable regulatory body.

      They may have cases where they break down, but their net social impact is positive.

      1 reply →