I know people who are still dubious about the cryptocurrency sector because they worry about losing their money to scams or security breaches, which has been a typical occurrence in this market.
Since the majority of users appear to have welcomed the requirement for required KYC, I believe the focus should now be on enhancing exchange security.
The cryptocurrency financial sector is in its developmental stage so issues like hacks and scam projects will always occur. As old as the fiat banking system they still suffer from security breaches and scams. In 2022 banks in the US paid close to $1.2 billion ransomware payments. So these attacks are not limited to the crypto industry but as the sector grows, it's security will improve.
I don't think that the majority of people are comfortable with KYC because it is an arbitration of the concept of bitcoin. The only reason why people give out their KYC is because they have few options. In my country, centralized exchanges are the major means of dealing with Bitcoin this is due to the fact that we have limited P2p platforms. It would not be a bad idea for exchanges to adopt current security measures to curb these attacks but some of them went bankrupt not because of attacks but mismanagement.
I am aware that KYC may reduce fraudulent activity, however dealing with hacking and security exploitation issues will need investing in the strengthening of security. Adoption could happen quickly with sufficient protection because safety will be assured..
These attacks will not end automatically, in fact, they might always be a problem in the crypto sector. Adoption should be promoted using the right information. People should be aware that they can keep their money in a safe non-custodian wallet and be their bank. They should be taught how to protect their coins against hacks. We should let them know that keeping money in centralized platforms is riskier.