Filtering out those bad people on which i do believe that it is one of the benefits that it would have. The main thing on here is on why exchangers or these business are really that applying out such rule it is just that because its mandatory and its something which they would really be needed up to comply for them to continue to operate. We do know that on this crypto world on which having that decentralization and anonymous will always be preferred. Try to look into those situations before on year 2015-2018 on which most of platforms isnt really that strict when it comes to KYC but later on on which they've been making out such transition on which they've been that becoming something like this on which they've been that imposing those kyc compliance due to because that they had become that regulated.
For us users, then there's nothing we can do but to comply with it also. Actually there's no really that something to worry aside from those possible leaks of information but actually we dont really know on what would really be that happening and we might already have that exposed our information on different ways or things or methods on what we've been dealing in the past. Now that we do have such integration then we should really be that prepared and embraced up on the risks.
Your argument assumes that KYC is just a necessary evil for exchanges to comply with regulations, but the real question is—who benefits from this compliance?
Think back to 2015-2018, when crypto was still a financial "wild west." Exchanges didn’t enforce strict KYC, and users had true financial autonomy. So why did things change? Because governments realized that crypto threatens their ability to control money.
KYC isn’t just about filtering out "bad actors." It’s about surveillance and financial control. Once your identity is tied to your wallet, you’re part of a system where:
- Your transactions can be monitored, blocked, or even reversed.
- Authorities can freeze your assets without trial.
- Your financial freedom depends on whether you "comply."
And the argument that "we’re already exposed anyway" is a defeatist mindset. Just because data leaks happen doesn’t mean we should willingly hand over more control. The more power you give centralized entities, the easier it becomes for them to shut you out when it suits their agenda.
Instead of embracing KYC, we should be fighting for a system where your money is truly yours.