alt Hacker News> Alright, so does that mean we don't need KYC for ... bank accounts either?
That sounds reasonable. A bank can just be an institution that holds money for people; they don't need to be all over their customer's business. It is like a telecom not being responsible for what their customers say. In a simple sense banks don't need KYC.
>> A bank can just be an institution that holds money for people
Nope. That is a storage locker. A bank uses the money it holds for other purposes such as loans or its own investments, possibly returning interest to the depositor. But, most importantly, a bank disperses money. it therefore needs to know who deposits what so that it doesn't eventually release funds to the wrong person. And then there are the lengthy procedures for handing out money without customer permission. People die. Governments garnish wages. Courts order payments to for child support. If you hold money you have to be prepared for this stuff. So you need to be absolutely confident in the identity of everyone you deal with.
Want a simple bank? A bank that doesn't ask for ID? Keep your cash under your mattress. Or put it all in a crypto wallet.