KYC As A Service

chekohler (70)in #kyc • 2 years ago

In today's edition, of YIYL, (You Invest, You Lose) we take a break from all the monetary issues for once and take a look at a process that I've always felt is only a lose-lose operation and that is the process of KYC and AML.

Now normies, statist cucks, and corporate simps will tell you that KYC is for your protection, we need to know what you are doing with your money. We need to remove your financial privacy so that criminals won't want to use this service because they would not want to get caught.

Yeah right!

KYC only applies to law-abiding citizens because only they would abide by it, its there to ensure that you're paying your fair share of taxes and it's there to ensure that if ever you become a persona non grata, that you can be found and cut off from your finances that's it.

KYC is a danger to you

KYC is not only an invasion of privacy but it can be a security threat too, financial institutions are not infallible and their data can be breached, when these lists are secured they are sold to hackers. They use these email addresses and phone numbers as ways and means of phishing users or try to secure their accounts and access the money from dox'd data.

KYC not only leaves you open to digital attack, but physical attack, if your balances are dox'd too along with your address being public.

KYC also paints a target on your back for those who want to misuse your identity to access other accounts. It's really a poor practice that offers very little upside and a large downside and has a track history to prove my claims.

Criminals don't use KYC

While the government claims KYC is for your protection, and to keep criminals out of financial institutions to avoid money laundering, let's look at how well that works.

Criminals aren't dumb, they're not going to hand over their details and are willing to throw others under the bus and have the cash to do it. Criminals pay what is called "KYC actors to run the verification for accounts they plan to use. These actors earn small amounts for each role with some making as low as $8. While the average ID doxer can earn between $20-$30 per deal.

https://twitter.com/TheBTCManual/status/1610175558377160707

The actors were mostly from developing countries and can be found marketplaces had a major concentration in South-East Asia, so your India, Philippines, Thailand, and the like. These people have no interest in crypto or shitcoins, they're just happy to secure a little income and are willing to trade their ID for it.

Once the criminal has the various KYC'd accounts they can fund money strategically into the exchange and then buy bitcoin or stablecoins and from there withdraw it on-chain and basically wash that clean cash to be spent somewhere else.

CertiK claims that over 500,000 members were found to be part of these KYC account selling and discovered that over 40 websites had run such fraudulent ads for this service.

So tell me, what is the point of KYC and why are we still pretending like it works?

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