Will we (Steemians) ever be forced to do KYC/AML/KYD?
Unlike most blockchains, STEEM has an inherent use-case and purpose. The ecosystem extends beyond Steemit, the first successful STEEM dApp. To clear things up, based on my (humble) understanding :
- Steemit is a dApp
- Steem is a technology
- STEEM is a blockchain (represented by all caps)
- $STEEM is a utility token (represented by the cashtag)
- $SBD is a stablecoin backed by $STEEM
- Steem-Engine is a third-party exchange
- Steemit’s internal market is (also) a third-party exchange
With all we have going for us, including the exchanges; at what point does regulators step in and insist on KYC/AML for some Steem or STEEM related entities ? 500k daily actives, 1m daily actives, another 2 Magic Dice style exits or is it just a matter of time?
I know many of us will cringe if and when this happens but I believe we should prepare for the day the regulators decide to crack down on STEEM dApps like casinos and investment vehicles etc. It’s happening across the board. And if Facebook gets their way, you can believe their government lobbyist will have a new target: STEEM.
This is not a coincidence...
Source: https://twitter.com/jon_g_olson/status/1141007636445315073?s=21
KYC may affect our dApps directly and not the blockchain itself but KYD (Know Your Developer) will protect us from scammers and fraudulent dApps that seem to crop up on STEEM almost weekly.
By no means am I promoting this, but I am preparing for it. Without KYC/KYD you cannot trust anyone or service on a blockchain nor hold bad actors accountable. Problem is our wallets are public, especially if you stake SP; it's a huge problem in the making.
Food for thought. Let me know what you think in the comments, will this ever happen or is Steem immune to regulation? How would it affect our budding networks; weedcash, palnet, steemspeak, DrugWars, Splinterlands etc?
Posted using Partiko iOS
I have never love this called kyc thing in my life. Kind of always suck
The feeling is mutual, it’s like a necessary evil 😩
Posted using Partiko iOS
It's not necessary!
"Without KYC/KYD you cannot trust anyone or service on a blockchain nor hold bad actors accountable."
There is no need for any KYC, KYD, or even KYF and similar crap. The blockchain is about not having to trust anybody - do your homework ;-)
Ya, we (all) know it's not needed. Thanks for your opinion.
That's what I'm doing (my homework) thanks (again), so your saying it's immune or? And why?
Have you lost any funds to a steem related dApp?
Have you heard of FAFT? How does the new regulations apply to our STEEM based exchanges?
:-)_?
Trustless block-chain is immune if it is enough decentralized (jurisdiction independent so to speak). Dapps may be immune if they follow the same logic.
Have I lost any funds to a Steem related dApp? Nope. But even if I had, I would blame myself and not lack of regulation/KYC or whatever...
And KYC is not about trust and/or security - it's about the powers that be controlling your assets...
You mean this? http://www.fatf-gafi.org/publications/fatfrecommendations/documents/guidance-rba-virtual-assets.html
They will try to regulate this area, no doubt. But it will be more or less unenforceable ;-) Not sure about Steem though, as this system is not really decentralized enough in my opinion.
But yes, that's what I was inquiring about (thanks for the link, lol). Not sure how 'unenforceable' it is given that Binance, Bancor, KuCoin and Shapeshift (pre FAFT example) were all FORCED to introduce new security measures due to regulation changes; most recently banning US citizens from some services albeit they are building US tailored services to fill the void.
STEEM is decentralized to a great degree, our STEEM exchanges are not.
A bit of context: I will be attending a forum on Digital Assets and Security Tokens this Monday at the Jamaica Stock Exchange. Only 300 attendees, to whom I will be introducing STEEM and Steem Engine's STO service.
Thanks for the reply
I think that they've banned US IP holders, not US citizens ;-)
Steem is not decentralized - the whole thing is being controlled by probably a dozen accounts with wallets thick enough to vote in/out any witnesses they want.
They banned US citizens and enforced that by banning US (and a few other countries) IP addresses . In regards to Binance, they are building US specific arms to their services.
A (whole) dozen? I thought it was less 😒
Posted using Partiko iOS
You know and I know that this sort of ban is like token compliance... Anyway, if normal exchanges are killed by over-regulation then there would be dexes, and possibly also dexes set up on the TOR network to fill the gap.
I’ve been saying the same thing. It’s coming. We can’t stay off the radar for ever and if we do steem can’t grow. I had to kyc for so many exchanges and will have to do it for steem in the future.
Posted using Partiko iOS