83
GenAI could make KYC effectively useless
(techcrunch.com)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 09 Jan 2024
83 points (91.9% liked)
Technology
59346 readers
5311 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
I mean, that's the entire point, yes. Some financial transactions, at some level of scale, should not be private.
For instance, if you abolish KYC, you've just fully legalized all insider trading. Perhaps you can see that there are some conflicts of interest there. On the crypto side, KYC allows the IRS to go after traders for capital gains tax. Without it, crypto would be an easy way for the ultra-wealthy to just completely bypass taxes, since you couldn't prove that it belonged to them.
It also prevent money laundering for drug cartels, terrorist cells, and rogue states/agencies. Obviously those organizations still find a eay to move money around, but it isn't cheap nor easy for them.