I really wish we had a push for payment neutrality. Financial transactions are infrastructure and infrastructure should be dumb and neutral. Why does everyone have to suffer slow and expensive transfers just to maybe occasionally catch some bad guys (and they're not actually caught, just mildly inconvenienced)? And of course once you're already doing it, there's inevitably overreach, as evidenced by Visa here.
And before someone chimes in about how crypto will solve this: yes, crypto has already solved this for the criminal class. But most of the rest of people still have to suffer all the fincrime policing every time they move money or pay for something.
I read somewhere that criminal organizations and individuals love KYC and AML because they have the resources to go around it and it makes their operations look legit.
It’s hard to say that it’s ok to profit from someone else’s crime.
If I sell you a bike cheap, no questions asked, then you ought be as culpable as me as you don’t have reasonable doubt that it’s stolen. Etc.
This can be weaponised. The lobbies go after visa and Mastercard etc by giving the company “proof” that same transactions are very illegal, eg leaks or underage or duress etc. This forces them in the position of being complicit which means they have to step back.
The content might be illegal in some countries and thats fair if we can assume the people who pushed for these rules were voted for. No one voted for Visa and Mastercard.
Mirrors what Marc Andreessen said on Lex's podcast.
The problem isn’t just regulatory overreach, it’s delegated enforcement w/out accountability.
Financial institutions are now playing judge and jury, not because they want to, but because the cost of scrutiny or punishment is too high.
It’s soft censorship by infrastructure...
Maybe is time to do a reboot of the economy, what about everyone goes to the bank and withdraw all their money, and when everybody has his money, we put the money back in the bank? Would be funny to see how banks would react :)
You might think I'm defending the multibillion company but here comes the catch: all of this is expensive so when you are doing something funky even though not illegal they just cut you out. You are a small dev or merchant and it's not worth running a whole monitoring apparatus over your activities.
Then we get into this situation where borderline cartel activity like this happens and we have a sort of shadow government enacting their own regulations. This raises some eyebrows dont you think? It will probably continue until governments realize this is happening.