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The purpose of KYC regulations are not to prevent scams but to prevent money laundering.
by olalonde 5y ago
The purpose of KYC regulations are not to prevent scams but to prevent money laundering.
- wwweston 5y agoIf that were true, would we all just breath a sigh of relief and say "whew, it's only to prevent money laundering"? But AFAICT it's not accurate, and KYC checks exist to prevent other forms of illegitimate activity (e.g. loan fraud associated with identity theft) which fit pretty neatly inside most definitions of "scam."
- olalonde 5y agoLenders were doing "KYC checks" long before KYC regulations of course and I'm sure no one is loaning their Bitcoin without doing thorough "KYC". But I'm not sure how this is related to the topic (sending money).