Re:Goldman-Backed Circle Buys Digital Exchange Poloniex
by Klathmon on Monday February 26, 2018 @02:47PM
(#16468341)
All the KYC laws in the world won't help when someone in another country transfers a bunch of bitcoin from the exchange account to theirs.
Or even worse in some cases, someone that maliciously "burns" all of your bitcoin irrevocably destroying it forever by sending it to a bad address. Even if you catch the person that did it, that bitcoin is gone forever, and you can't just bring it back without concensus of the extreme majority of all miners and users (which isn't going to happen in bitcoin, it barely happened in Ethereum when it was much smaller with the DAO hack)
Re:Goldman-Backed Circle Buys Digital Exchange Poloniex
by tudorconstantin on Monday February 26, 2018 @01:46PM
(#16467825)
KYC wouldn't help if hackers breach into legit users accounts.
With good KYC regulation and enforcement many "hacks" can be mitigated. The Bitgrail hack, for example, was performed by customers taking advantage of shitty code. Presumably they know which accounts withdrew funds, but if they knew who the customers were that belonged to those accounts, they could go after them. This stuff is a big reason why I support exchanges being regulated as money transmitters.