Does that mean that if one participates in an ICO and puts in over $3,000, that gets reported to the government?
Once you join and ICO with a KYC it will be reported to the government,i think they pass all the participant after the ICO,i dont know about the law but some countries are banning its citizen from joining ICO.
Or if you move $3,000 out of an exchange, that gets reported?
Weather you move your funds or not once you join the ICO the government has the info on your transaction, this is their way of tracking their citizen who can potentially be evading taxes.
As long as KYC/AML continues with current methods of ID verification, all these problems are likely only going to get worse, Because none of the procedures are scalable, an increase in customer can have a significant downside for some banks, For instance, if the number of customers at a bank doubled. KYC requirements could caused them to wait six to eight weeks to get use of their accounts.