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Issue #844: Why do we put up with this?

Issue #844: Why do we put up with this?

Oct 13, 2020
Marty's Ƀent

Issue #844: Why do we put up with this?

I know, I know. Uncle Marty has been on an annoying tip about KYC/AML and how ineffective it is over the last few weeks. Please, make it stop!

Not today, freaks. Especially considering the data that is coming to light. Specifically, the data highlighted in the infographic above. We've been beating the fact that KYC/AML compliance does more harm than good for your average law abiding citizen while doing very little to actually stop any criminals from successfully executing their crimes. This compliance adds considerable costs to businesses while allowing the small number of those businesses with big enough war chests to create regulatory moats that disincentivize competition and, therefore, better products for end users.

If this study from Ledger Insights is accurate, it seems that these facts are becoming undeniable as only .05% of the funds moved and used by criminals around the globe has been seized as a direct result of these regulations. This utterly ineffective regulation has led us to a point where companies around the world have spent 100x more in being compliant with these regulations than the amount of total funds that have been seized.

This is insane! Companies are essentially being taxed and forced to create new, systemic arms of their businesses in an attempt to comply. All the while, criminals are facilitating their actions without many problems and average users are having their data leaked to the dark web at will. It needs to stop.

Unfortunately, it seems that the individuals from Ledger Insights who authored this piece simply want to create better reporting techniques to help better identify confiscated funds. This seems like a pipe dream that glosses over the core of the problem; criminals will always route around regulations and the regulations will inevitably impede competition and the Common Man's privacy. Though, this shouldn't be surprising considering Ledger Insights is a site for "enterprise blockchain news" that shilled Ripple in this piece. Their intentions should not be trusted.

However, we will thank them for digging up data that highlights the utter failure KYC/AML laws have been in regards to their stated goals of stopping crime. Even if they want to use it to cheerlead "better AML compliance tech".

Final thought...

Family runs are a good midday activity.


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