The Know Your Customer (KYC) regulations in the crypto industry have sparked intense debate among experts and users. On one hand, implementing KYC requirements helps prevent fraud, ensures compliance with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) laws, and builds trust among institutional investors.
However, critics argue that KYC raises concerns about user privacy and data protection. Centralized storage of sensitive personal information increases the risk of data breaches, which can have long-term consequences for users. Moreover, KYC may undermine the decentralized and anonymous ethos of crypto, making it an extension of traditional finance.