This is bad.. I was really hoping they'd let an audit happen to prove their books were good. As each day passes i really think they cooked their books using Tether. Rather than mandating KYC maybe the govt should mandate audits on the exchanges.
The Chinese government tried doing that to its exchanges, so some of their exchanges moved abroad to avoid mandatory KYC. It's impossible to find out where half the exchanges are based, or who runs them anyway.