[lokar]

It depends what you mean by solved.

Banks tend not to over engineer things. KYC can be seen as a 3 sided trade off: cost of KYC infra/process/etc, lost revenue from denied business and fines from regulators.

They (the banks) don’t really care about the social goals of KYC, they just try to best optimize for expected value in the trade offs.

The regulators understand this, and are basically fine with it. They have their own trade offs they are balancing.

Both sides mostly find and equilibrium.

[fc417fc802]

Even considering the social goals there's no need for a 100% solution. We only need to stop most fraud and reduce the impact of the fraud that does happen to a sufficiently low level.

One of the more important goals isn't to directly stop fraud but instead to provide tools that give end users results that scale with the amount of effort invested. The level of risk should be a tradeoff that the end user is able to make.

Current solutions mostly allow for that but certainly have some rough edges.