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The AML stuff is expensive even for the investment industry which unlike crypto, isn't perfectly catered to hackers, scammers and money launderers. I'm guessing
by wolongong942 4y ago
The AML stuff is expensive even for the investment industry which unlike crypto, isn't perfectly catered to hackers, scammers and money launderers. I'm guessing AML and support is big a cost area for COIN. This is just speculation as i don't have time to read their public papers.
Take a look at the Coinbase Subreddit to see how many suckers are getting hacked, scammed, locked out for AML reasons on any given day and getting their lawyers to write legal threats to Coinbase. Responding to this all costs money and it's where the Binance model of avoiding AML responsibilities and hiring outside US is superior (until it isn't, when execs end up in a US prison).
- from 4y agoSupport/compliance officers do not need to be American even for American banks as far as I can tel. Based on a cursory glance at some identity verification companies I don’t think they’re paying more than $1 per selfie and document verification. Chainalysis is probably where things get expensive (probably high 7 figures a year) + I think the government just recently forced them to buy some new compliance tools as part of a settlement. But yes, the Binance model and allowing countries seen as risky does allow them to get substantially more volume.