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DEFI(NE)

Heard on the Block: "KYC"

Snacks / Tuesday, January 10, 2023

☎️ Like calling all your new babysitter's references…

Crypto loves anonymity. Bitcoin's creator, Satoshi Nakamoto, used a pseudonym, and many advocates champion the asset class for financial privacy. That core principle runs headfirst into US-based exchanges' "know your customer" (aka KYC) obligations. Think: regulatory requirements to run customer-identity checks. Now, that tension's come to a head as exchanges are hit with fines and crypto companies spend more on compliance.

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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.