KYC is indeed burdensome. But laws on money laundering being what they are, you can't claim ignorance. There's a minimum standard to be met when handling money

KYC is indeed burdensome. But laws on money laundering being what they are, you can't claim ignorance. There's a minimum standard to be met when handling money in aggregate. If you don't know your customer, how do you know you aren't part of the problem? Criminal organizations are great at hiding finances by exploiting loopholes at scale, and unregulated crypto is one hell of a loophole. The laws are setup to get everyone up and down the criminal chain-of-command, guilt by association. It's a good thing that criminals have a hard time finding financial institutions that will take their ill-gotten gains. Unfortunately there is no semi-safe DMZ between highly-regulated and unregulated finance. It's pretty much binary. Regulated finance continues to grow until it touches everything legit, everything else gravitates to shadow overseas/back-alley finance.