If you buy into it being regulatory, you've already bought into the fraud. They're often delaying weeks to months to actually look into whatever set their hair trigger. That's not regulatory compliance, that's increasing your float. Especially in cases such as "all we needed was an updated passport check while you do the Macarena." The regulatory bit just provides the cover for the operation, the fact that it's true that regulation exists doesn't mean whatever is done under the flag of regulation was actually regulatory in nature it just means you have a more believable pile of steaming bullshit to tell the hysterical customer to make it sound like something closer to breaking the law is actually an attempt to follow the law.

Put otherwise, suppose I run a bank and you deposit your paycheck. I decide our reserves are a little low so I set KYC/AML triggers even more sensitive on a hair trigger so that an extra of 0.2% of innocent paychecks get held up an extra 4 weeks (I have also conveniently slow down / underhire customer service) which also causes me to catch 1 or 2 more real criminals. That's not KYC/AML even though that's the mechanism by which I claim to have held it. I'm not bound by the BSA secrecy in such case since the underlying trigger was for increasing the float rather than actually KYC/AML compliance.

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I am accusing fintech and crypto businesses in general of committing mass fraud through intentionally setting KYC/AML on an artificially sensitive trigger to increase their floats, yes.

I do not know if Coinbase specifically does that -- my limited experience with them is they are one of the few fintech companies that hasn't fucked me over.

I have an absolutely massive body of evidence that leads me to that conclusion, through my own transactions and frozen funds as well as studying a wide amount of CS complaints that show evidence that KYC/AML checks on frozen funds are stalled for weeks to months without any plausible explanation of what is happening which is not a KYC/AML regulatory action but rather an intentional choice to raise floats for free interest and padding their numbers.

Of course what's extraordinarily ironic here is when fintech claims you violate KYC/AML then "law says we provide no evidence" but if you turn around and accuse them then the industry shills will scream "without evidence" while simultaneously saying your counterparty doesn't have to provide it! They are hypocrites! The very people accusing you without evidence betray their own sins accusing you of same! They were the ones that set the bar that they don't need to present evidence, not me.