Why KYC Solutions are becoming a norm in Cryptocurrency?

[arvinabeabe]

This is supposedly not the first attempt from such countries. For instance, the IRS of U.S took Coinbase to court, as an effort to get information regarding their customers. This was predominantly done to validate which individuals failed to report their appropriate incomes in their tax returns. While taxes are one thing, the main concern that many country officials fear include any terrorist-based crimes. Especially given the fact that such individuals will be able to finance their assets without getting caught and doing so in a private and secure manner.

On the bright side, this is one more positive sign that will actually push forward the crypto enthusiasts to actually spend cryptocurrency as opposed to just buying them and using it for profit-taking only. The only legal basis for tax evasion using cryptocurrency is when virtual currency is converted to fiat and is not declared to authorities by the crypto enthusiast. When converted into fiat and a person realises profit has been earned on the asset, it is the legal and right thing to subject that profit taxation. By just making profits and conversion to fiat for unprecedented profits, people are actually destroying the decentralized ecosystem instead of supporting it. But by living largely on cryptocurrency, no profits are realized, and no centralized government has a claim over your asset.

[RedzoneASE19]

I think it is a solution for the stoppage it using cryptocurrency in a illegal activities and transactions.

[tamango]

This is a very delicate thing, KYC is required now everywhere and I don't have problems to do it also for bounties but sometimes it will risk to destroy some kind of projects like privacy coins.

[cryptoperry]

To prevent money laundering and to make sure that the tokens will be sent to the right people.