It’s
time
to
scrap
AML
/
KYC
entirely.
The
idea
that
politicians
should
know
how
citizens
spend
their
money
is
a
new
and
deeply
flawed
idea.
Bruce
Fenton
is
the
CEO
of
Chainstone
Labs,
an
adviser
at
Watchdog
Capital
and
co-host
of
the
Satoshi
Roundtable
community
event.
He
is
also
the
former
executive
director
of
the
Bitcoin
Foundation
and
ran
for
Senate
in
New
Hampshire
in
2022.
An
entire
generation
has
been
fooled
into
thinking
this
is
a
necessary
part
of
finance
and
the
world
continues
to
double
down
on
an
unworkable
system.
Only
30
years
ago,
when
I
started
my
career
as
a
stockbroker/financial
adviser,
I
could
call
you
on
the
phone
and
sell
you
Microsoft
(MSFT)
or
IBM
(IBM)
stock
and
I
did
not
need
your
date
of
birth
or
social
security
number.
You
didn’t
even
need
to
have
money
in
the
account.
From
1990s
to
the
post
9-11
Patriot
Act
(a
horrible
law)
saw
a
radical
increase
in
anti-money
laundering
and
know-your-customer
(AML/KYC)
requirements.
These
seem
to
get
worse
every
year.
See
also:
Elizabeth
Warren’s
Crypto
AML
Crypto
Bill
Is
Likely
Unconstitutional
|
Opinion
In
my
office
in
the
90s
when
we
were
first
required
to
take
a
drivers
license,
the
older
brokers
were
incredulous:
“What
do
you
mean
we
need
an
ID
for
someone
buying
stocks?!?
What’s
next,
you
need
an
ID
to
buy
gas
or
groceries?”
Now,
just
25
years
later
an
entire
generation
thinks
this
is
normal
or
how
it
should
be.
Worse
yet,
some
think
the
system
won’t
work
without
it.
The
opposite
is
true
—
the
compliance
gums
up
the
works
and
adds
friction
where
it
should
not
exist.
While
the
regulator
class
arrogantly
acts
as
if
AML/KYC
protections
are
their
birthright
and
ending
the
regime
is
some
sort
of
untouchable
rail,
the
justifications
are
weak.
Why
do
we
have
these
regimes?
To
stop
“money
laundering?”
What
is
that?
Who
is
the
victim?
Is
it
to
stop
“human
trafficking”
or
“terrorism?”
If
so,
how?
Is
it
to
“stop”
the
12,000
entities
on
the
Office
of
Foreign
Assets
Control
(OFAC)
list
by
messing
with
the
billions
of
people
not
on
the
list?
See
also:
Tornado
Cash
Devs
Are
Caught
in
a
U.S.
Dragnet
|
Opinion
Are
major
criminals
somehow
stopped
by
this?
Has
it
stopped
crime?
Even
if
it
did,
is
it
worth
burdening
millions
of
firms
and
billions
of
people
with
paperwork
and
procedures
that
slow
down
commerce?
Shouldn’t
efforts
be
made
to
go
after
the
actual
criminals
rather
than
encumbering
the
entire
world
with
an
inefficient
compliance
regime?
Money
must
be
able
to
flow
and
move.
People
must
be
able
to
take
risks
and
make
investments
as
they
choose.
This
is
the
lifeblood
of
a
solid
economy
and
the
jobs,
growth,
prosperity
and
peace
that
comes
with
it.
The
U.S.
(and
by
extension
much
of
the
world
due
to
our
influence)
is
sacrificing
jobs,
innovation
and
opportunities
by
chasing
an
extremely
ineffective
and
indirect
compliance
regime.
The
entire
idea
belongs
back
in
the
dumpster
of
history.
Let
the
investigators
chase
terrorists
and
human
traffickers
for
those
actual
crimes
and
let
the
other
billions
of
us
use
and
move
our
money
as
we
wish.
A
version
of
this
article
was
first
posted
on
social
media.
