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0 pointsKirillPanov5y ago0 comments

> Newspapers and cable both heavily rely on ads ... Cryptocurrencies seem like it technically could work, but I don't see that happening.

Because of the fundamental asymmetry in the law: advertising+tracking don't require AML/KYC, cryptocurrencies (mostly) do.

If your users pay you with their attention or tracking data, you're not required to verify their identities, ask them if they're terrorists, store copies of their passports in some hacker-magnet database, or any of that.

If your users pay you with cryptocurrencies you have to do all of that.

The problem isn't a business problem or a technological problem, it's a regulatory problem. This outrageous double standard is massively subsidizing the adtech-surveillance monster. Require AML/KYC be performed on users before ads can be shown to them, and if ads are shown or data collected without AML/KYC, impose the same "corporate death penalty" allowed for AML/KYC failures. Or else eliminate AML/KYC for cryptocurrencies.

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pfranz5y ago· 1 in thread

The use case I was thinking of for individuals is more like paying a nickel to read an article. I'm not really familiar with AML/KYC requirements, but I'm not sure I see the need. I would imagine most people would want a basic account so they could revisit paid content later. Any laundering would get caught looking at your business' finances (what you do with the money) or tracking crypto accounts in a more traditional manor.

I've used cryptocurrencies here and there for online services (merch and digital services) and don't remember any additional scrutiny. I reasons I had in mind are the confusion and overhead of using crypto for the average person.

I guess if there were some regulatory requirements in a made-up "ideal" scenario, I would see it mirroring existing banks and credit cards where your source wallet was from a "sanctioned" account to track location for local taxes and whatnot. The onus wouldn't be put on the business other than having an allowlist (by prefix or something)--but none of that exists. I would think a lot more structure an institutions would need to exist anyway to make cryptocurrencies more palatable to individuals.

KirillPanovOP5y ago

Brave got a tap on the shoulder from the government and was told they had to collect all that data in order to release crypto payments to the owners of the websites they'd been collecting micropayments for:

https://preview.redd.it/52bkflf0cld31.jpg?width=462&format=p...

https://support.brave.com/hc/en-us/articles/360032158891-Wha...

I disagree with a lot of Brave's approach. However their experience shows that this problem isn't theoretical. One company has already managed to deliver frictionless micropayments, and was told by the government that if they didn't add some friction back in (AML/KYC), executives would be going to prison.

Not cool.

This also led to a real mess with the operators of archive.today, who don't live in the USA and apparently aren't supported by the AML/KYC process being used. So a fairly large amount of money collected in order to support them is stuck and can't be paid out:

https://blog.archive.today/post/626174398020403200/please-pr...

dredmorbius5y ago

AML: anti-money laundering

KYC: know your customers

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