Other than that your webcam idea is too much friction. Customers will just go elsewhere.
again.. people not wanting to do KYC !!!!
as for going elsewhere. tell me what "elsewhere" services allow UK bank Faster payment..
by being legal in the UK you have to do KYC. if you want to run a business in a different country/avoiding KYC, then your dodging FIAT laws, avoiding bringing new enterprise to UK and also adding extra costs to the customer (fiat exchange rates, delays)
this thread is about UK business owners wanting UK infrustructure. not passports to move to malta
There's no doubt you have to do KYC but getting on a webcam everytime you want to login or move money is a massive amount of friction to customers. Bitcoin's main demographic is males 18-25 who distrust government and value their privacy. I doubt they'd use your 1984 exchange.
Scanning your passport and uploading it to somebody who could be storing it insecurely is bad enough.
I don't know where your passports and Malta comment came from...