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.
Imo I think KYC should just be scrapped off altogether because firstly user data isn't usually handled well and secondly 2fa and email verification should be enough security & proof to show you own an account incase of a breach.
Besides, users aren't getting hacked, it's the exchanges themselves which need to work on enhanced security measures!
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.
With fake docs flooding the internet, I don't think KYC will reduce fraudulent activities, the best is having geolocks, IP whitelisting, and possibly phone number & sms verification as these might work better than KYC which removes the potential of exposing user data to unauthorised users.
The latest Houbi attack, which resulted in the theft of roughly $8 million worth of Ethereum, and a few other security exploitations of a similar nature on other trading platforms in the past don't bode well for the sector, which calls for the prioritizing of security.
https://cointelegraph.com/news/huobi-global-crypto-exchange-hacked-reportEven though there are still very few trading platforms that have never experienced security exploitation, the recent incident with Houbi should serve as a reminder for everyone to remainattentive and prioritize their security.
Perhaps these exchanges need to talk to each other more to learn something from each other in regards to best security measures to not getting hacked