The unfortunate battle we face is that people don't see what's coming. They aren't equipped to understand what the law of the EU and US can do. People underestimate the sheer technical capabilities and cunning of the state. Worse yet, they fail to realize that these ideologues have a completely different world view. For as much as you seek to avoid censorship, they *believe* in the neccessity of it.
From their perspective, everything is a potential threat to their power, to their narrative, a weed in their garden.
Binance mandated full KYC today. Onlyfans just used the payment rails to threaten the livelihood of god knows how many people. I'm consistently met with blank stares when people realize just how actually censurable they were and how caught in the blue they were by US financial regulations. Consistently people underestimate the capacity to censor payment rails. This was one ideological group, puritans, not even the main one which I will not mention who is *really* obsessed with censoring peoples payment rails for wrongthink.
They have a new tool, you may have just seen, being implemented on Bitmex, Deribit, Huobi, and Binance. It's called Veriscope. It's a "trustless decentralized" way to comply with the "Travel Rule". Well it is basically blockchain Swift.
"Compliance is an NFT" If you don't have the layer 2 KYC token, you get financially excluded. Pretty Simple.
How long until every native wallet in the world gets blacklisted from depositing to full KYC exchanges that does not have this Veriscope thing on it, how long before they start blocking deposits that don't have a full custody chain history of wallets and Vasps with travel rule compliant layer 2 KYC tokens. We always knew this was coming.
Whirlpool can't work on this, nothing that lacks the KYC token can. They're sneaking a gardened "Fungibility Crisis" onto us. They're recreating Swift, and global financial exclusion. They want to, it's what they *believe*.
Look I hate to say it folks but if you read the writing on the wall, if we don't normalize venues and merchants in person accepting native bitcoin on native wallets in a cash like basis, we run the risk of re-excluding everyone. Cash is king, because you can't do this to it, that's why they want a cashless society. If you want bitcoin to act like cash, it's a cultural war more than anything.
I firmly believe issues with surveillance orwell antics concerning DeFi and Lightning network in general are going to go strait to the Supreme Court. They will fight us tooth and nail to the bitter end to have the right to use Lightning Network peer to peer payments en masse adoption at the point of payment like cash, and if we lose that, they will have constant surveillance over every payment, and I see no outcome of that other than stranding a huge part of native bitcoin out of the US and EU gardened chain analysis surveillance ridden systems.
They want you to wake up a criminal. Sure there will be mass disobedience, but ultimately with criminal Banking Secrecy act prosecution and IRS enforcement on payment shops accepting 'unsurveilled lightning payments'..They can ruin peoples lives, businesses, imprison people, intimidate people.
Much rather they would have a CBDC with an expiration date, negative interest rate, and immediate censorship.
Making money on offshore exchanges and DeFi, unlicensed products? Well don't be surprised if they have plans to keep it banned off offramps, they dont' want you to make unsanctioned money that you can actually spend.