Know Your Customer regulations, part of the Patriot Act, is claimed to help “Stop Terrorists and Drug Traffickers” from using the banking system.
You can judge for yourself how successful it has been at “Protecting the Homeland”. However, these onerous regulations cost millions per year to enforce and prevent many people from using the banking system, leading to a massive group of ‘unbanked’ and those who cannot benefit from VTSN because of their inability to get money into the system.
For KYC, the bank will want to know:
- Your name, Address, SSN, proof-of-residence (These are all things that any hacker can find or buy on the Deep web, however, which is why identity theft is so common).
- After getting this info, it will take time for them to verify.
- Because of many of the weaknesses of Crypto 1.0 (once your money is gone, it is gone…no FDIC protection. No insurance)…centralized exchanges often build in many barriers to immediate funding and sending money, such as delays of 7 days or more.
- These regulations can also be used to freeze any assets you have “while an investigation is being conducted” that could take months or even years. Many people have only gotten their money from centralized exchanges after utilizing expensive lawyers.
Hopefully VTSN can herald a new, free system again one day.