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The alternative is the freedom to make any financial transaction without the government being involved. If your concern is effective taxation, there are plenty

The alternative is the freedom to make any financial transaction without the government being involved. If your concern is effective taxation, there are plenty of methods that worked historically while preserving financial privacy like property taxes.

topranks 1y ago
Pretty sure they didn’t that’s why we brought in anti money-laundering laws.
mxschumacher 1y ago
it's not about taxes, it's about fighting illegal activity. Terrorist financing, drug dealing, human trafficking etc - do you really think it's a good idea to let those actors exchange payments freely?
- losvedir 1y ago
  What's next, random searches at road checkpoints? Do you really want to let those actors use roads freely?
  - topranks 1y ago
    Do you the police should have zero power to set up checkpoints, or search cars even with a warrant?
    - djrj477dhsnv 1y ago
      Checkpoints, no. Searches with a warrant, yes.
- djrj477dhsnv 1y ago
  Yes, I think everyone should be able to exchange payments freely. Drugs should be legal, so that's not a problem. Terrorism and human trafficking are more complicated topics, but basically I think they should be attacked more directly, not financially.
mewpmewp2 1y ago
The biggest reason for KYC and regulations are anti money laundering and corruption. By making non KYC transactions easier, above becomes much easier and crime, fraud, scams and corruption significantly more profitable.
- zx8080 1y ago
  Is there any report or research showing that KYC actually helped reducing corruption?
- Saline9515 1y ago
  Problem with KYC and AML is that if you listen to the regulators, there is no end to it, the requirements only increase. I was once asked to provide 20 years of banking receipts for a small savings account that my grandmother had opened for me when I was 5. In the EU at least, it's common for banks to block transfers between countries, even if the transaction is well-documented. The most infuriating thing is that there's no real proof that AML works. It's just excellent at false positives, ending in account freezes for innocent people. Stablecoins' success is also a reaction to the ever-increasing friction created by overreaching regulation. If you have a supplier in China, and need to buy some in-demand goods, you can sign the contract and send the money now, whereas with the classic banking system, you'd have to wait for two weeks to clear everything. This alone is brilliant and should be welcomed for its usefulness.
  - baq 1y ago
    Stablecoins are banks. What you’re describing has been the foundation of the banking system since medieval times. https://en.m.wikipedia.org/wiki/Hawala https://en.m.wikipedia.org/wiki/Hawala
    - Saline9515 1y ago
      What is interesting with stablecoins is that they are on the blockchain, which acts as a decentralized, uncensorable ledger which doesn't require you to tell a bank clerk what is written inside your wedding ring to be allowed to buy a second hand BMW in Poland.

topranks 1y ago

Pretty sure they didn’t that’s why we brought in anti money-laundering laws.

mxschumacher 1y ago

it's not about taxes, it's about fighting illegal activity. Terrorist financing, drug dealing, human trafficking etc - do you really think it's a good idea to let those actors exchange payments freely?

losvedir 1y ago
What's next, random searches at road checkpoints? Do you really want to let those actors use roads freely?
- topranks 1y ago
  Do you the police should have zero power to set up checkpoints, or search cars even with a warrant?
  - djrj477dhsnv 1y ago
    Checkpoints, no. Searches with a warrant, yes.
djrj477dhsnv 1y ago
Yes, I think everyone should be able to exchange payments freely. Drugs should be legal, so that's not a problem. Terrorism and human trafficking are more complicated topics, but basically I think they should be attacked more directly, not financially.

mewpmewp2 1y ago

The biggest reason for KYC and regulations are anti money laundering and corruption. By making non KYC transactions easier, above becomes much easier and crime, fraud, scams and corruption significantly more profitable.

zx8080 1y ago
Is there any report or research showing that KYC actually helped reducing corruption?
Saline9515 1y ago
Problem with KYC and AML is that if you listen to the regulators, there is no end to it, the requirements only increase. I was once asked to provide 20 years of banking receipts for a small savings account that my grandmother had opened for me when I was 5. In the EU at least, it's common for banks to block transfers between countries, even if the transaction is well-documented. The most infuriating thing is that there's no real proof that AML works. It's just excellent at false positives, ending in account freezes for innocent people. Stablecoins' success is also a reaction to the ever-increasing friction created by overreaching regulation. If you have a supplier in China, and need to buy some in-demand goods, you can sign the contract and send the money now, whereas with the classic banking system, you'd have to wait for two weeks to clear everything. This alone is brilliant and should be welcomed for its usefulness.
- baq 1y ago
  Stablecoins are banks. What you’re describing has been the foundation of the banking system since medieval times. https://en.m.wikipedia.org/wiki/Hawala https://en.m.wikipedia.org/wiki/Hawala
  - Saline9515 1y ago
    What is interesting with stablecoins is that they are on the blockchain, which acts as a decentralized, uncensorable ledger which doesn't require you to tell a bank clerk what is written inside your wedding ring to be allowed to buy a second hand BMW in Poland.