RE: LeoThread 2024-09-14 13:49

[ahmadmanga]

Arguments for KYC:

1. Fraud Prevention: It helps companies detect and prevent fraud by verifying customer identities.
2. Regulatory Compliance: Governments mandate KYC to combat financial crimes like money laundering.
3. Trust & Security: It builds trust between financial institutions and customers by ensuring legitimate transactions.

Arguments against KYC:

1. Privacy Concerns: KYC involves sharing sensitive personal data, which may lead to privacy breaches.
2. Exclusion: People without formal IDs or in underserved areas might be excluded from financial services.
3. Costly: Implementing KYC can be expensive for businesses, especially smaller ones.

Both sides balance between security and privacy concerns.