The post KYC in Crypto Mining Is a Net Good That Will Elevate the Industry appeared on BitcoinEthereumNews.com.

Few letters spark fiercer debate in blockchain than these three: KYC. Over the last decade, Know Your Customer rules have permeated most crypto industries, but despite their widespread implementation, they remain controversial in sectors that have traditionally been largely devoid of regulation.  Few centralized exchanges today operate without KYC save for a handful of shady offshore platforms. The remainder have fallen into line, recognizing the need to adhere to financial regulations, avoid censure, and mitigate the flow of hacked and laundered funds. One frontier that’s been slower to adapt to this paradigm is mining, an industry where anonymity still reigns supreme. But as the industry becomes more tightly enmeshed with other crypto sectors and adds fiat onramps, mining companies too have acceded and begun implementing KYC. While the hesitance of the mining operators still holding out is understandable, resistance is futile. Despite what its critics claim, KYC is merely the cost of doing business today – and there’s compelling evidence that its widespread implementation will be a net good for mining. In the Beginning There Was None Crypto started out with zero regulations at a time when most people had never even heard of Bitcoin and even its most ardent supporters could not have predicted it growing into a multi-trillion dollar industry. In the earliest days of Bitcoin, there weren’t even wallets, let alone exchanges to trade on, while concepts such as onchain analytics were still years away from conception. Over the years, the development of blockchain tooling, fiat gateways, coupled with rising regulatory scrutiny and global adoption, have all served to make KYC the norm for accessing most crypto platforms and products. The apocalyptic predictions of wide scale data theft, identity fraud, and darknet data resellers haven’t come to pass. KYC has changed very little from a user perspective,…

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Filed under: News - @ September 19, 2024 9:26 am