On-chain investigator ZachXBT criticized Know Your Customer practices in the crypto industry, calling them one of the least useful types of data for investigations and threatening to publish on-chain methods for avoiding excessive surveillance. ZachXBT argued KYC often benefits attackers rather than users, particularly when companies are hacked and management faces no legal liability for stolen customer funds, and questioned why governments effectively force people to pay $100 on the black market for basic privacy. The criticism came amid growing concerns about mandatory online identification requirements, with ShapeShift founder Erik Voorhees warning that KYC could soon be required to use a computer and Johns Hopkins University cryptography professor Matthew Green stating age verification is rapidly becoming part of nearly every new regulatory proposal.
Voorhees and Green Warn About Expanding Identification Requirements
ZachXBT's comments came in response to a post by ShapeShift founder Erik Voorhees, who warned that KYC could soon be required even to use a computer. Matthew Green, a cryptography professor at Johns Hopkins University, stated age verification is rapidly becoming part of nearly every new regulatory proposal. Green argued the issue is not about age but about identity, claiming that under the guise of protecting minors, governments and platforms are building infrastructure that could eventually link a person's real name to their online activity.
Green Describes Staged Rollout From Age Checks to Mass Surveillance
Green described a scenario in which the system could be rolled out in stages, starting with age verification for access to certain content types. According to Green, early systems would collect identification documents while some would use privacy-preserving technologies. Green warned the next question would be under what conditions law enforcement agencies could access collected data and how anonymous website activity could be tied back to a real identity, requiring adjustments to privacy technologies so they effectively hold a user's real identity in escrow every time they visit a site. Green stated access to that data could initially require a warrant, then become available by request, and eventually be integrated into mass scanning systems. Green argued the stated goals of fighting grooming and child abuse material would not be achieved because such measures have not historically reduced those harms.
FAQ
What did ZachXBT criticize about KYC practices?
ZachXBT called KYC one of the least useful types of data for investigations and argued it often benefits attackers rather than users, especially when companies are hacked and management faces no legal liability for stolen customer funds.
What scenario did Matthew Green describe regarding age verification?
Green described a staged rollout starting with age verification for content access, progressing to law enforcement data access that could initially require a warrant, then become available by request, and eventually be integrated into mass scanning systems that link anonymous online activity to real identities.
