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by scoofy 409 days ago
>I doubt banning Monero or Zcash would prevent criminals from tax evasion. They'll find other ways. So, as often happens, "Locks keep honest people honest".

You realize that "locks keep honest people honest" is a reason to have locks, right? The point is that honest people will commit tax fraud if we make it easy for them to do.
2 comments
neiman 409 days ago
Yes, you're correct. I used it in the wrong way.

I don't think KYC keeps people honest, I think it's just making the life of honest people uncomfortable.

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const_cast 409 days ago
The thing is you kind of need KYC because otherwise it becomes too easy to launder money. Most countries have previously had problems with organized crime. In the US, the mafia had immense control in some cities in the early to mid 1900s. They're gone, in part, because of processes like KYC.
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neiman 409 days ago
Many countries still have problems with organized crime, and it's getting worse even though they have aggressive KYC and AML. Israel is one example I'm familiar with. So it's a bit more complicated than that.

I understand the goal of KYC/AML, and maybe in some places it's implemented correctly. But from my limited experience in the EU, it can be easy for criminals to avoid it, but it makes my life difficult for no good reason (both for privacy violation and for times when it is simply fails).

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etrautmann 409 days ago
"honest people will commit tax fraud"

wouldn't that make them dishonest by definition?

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scoofy 409 days ago
The entire point of the expression is that many people will do things they shouldn't do if they are given an easy opportunity. The idea is that shame is ultimately what keeps most people in line. The vast majority of people won't commit armed robbery, but a few more will pickpocket, and more still will take the cash out of a wallet they've found before turning it in.

The point of creating friction is that it's the friction that keeps most people in line. A bike lock isn't going to protect your bike from being stolen by someone who is okay with being a bike thief, but if you leave your bike out without a lock, you've just opened yourself up to having it stolen by a much, much larger portion of the population who don't see themselves as "thieves" as they commit theft.

You can just look at what's happened on SF transit. SF has (intentionally) created a system where you technically don't have to scan your card to get on the bus if you have a monthly pass or use the iphone version of payment... the result is a shitload of people who would otherwise pay for the bus if you had to scan your card, and everyone knew you were cheating the system if you don't, they just don't pay now. If you make it easy for people to be bad actors, more people will be bad actors.

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