ZachXBT vs. KYC: "A Useless Practice That Only Helps Hackers"
On-chain detective ZachXBT has sharply criticized the Know Your Customer (KYC) verification procedure in the crypto industry, calling it one of the most useless types of data for investigations. Moreover, he threatened that the topic radicalizes him so much that he will start publishing on-chain methods for evading excessive control.
According to ZachXBT, KYC benefits only malicious actors. In the event of a company hack, its management bears no legal responsibility for the theft of user funds, while the collected data becomes easy prey. The analyst raises a reasonable question: why does the state effectively force people to pay $100 on the black market for access to basic privacy?
The debate over verification is gaining momentum
ZachXBT's remark came in response to a post by ShapeShift founder Erik Voorhees. The latter warned that KYC might soon be required even for using a computer, emphasizing the danger of spreading mandatory identification on the internet. Voorhees also shared a post by Matthew Green, a cryptography professor at Johns Hopkins University.
Green highlighted how quickly age verification is becoming part of every new regulatory proposal. According to him, it's not about age but about identity verification. Under the pretext of protecting minors, an infrastructure is being built that ultimately ties a person's real name to their online actions.
How privacy technologies can turn into surveillance
Green described a scenario of phased deployment of the procedure. First, age verification will be introduced for access to some content, and initial systems will begin collecting identifying documents, some using privacy-preserving technologies. Then the question will arise: under what conditions can law enforcement access the collected data, and how can an anonymous action on a website be linked to a real name?
According to the expert, this will require "fine-tuning" privacy technologies so that they store the user's true identity in a depository with each site visit. Access to such data will initially be granted by warrant, then by request, and eventually integrated into mass scanning systems. At the same time, the cryptographer emphasized that the stated goals—combating grooming and child sexual abuse material—will not be achieved, as these metrics have never decreased due to such measures.
Cryptalist Analysis: ZachXBT's strong stance is a warning signal for the entire industry. If one of the leading on-chain investigators calls KYC useless, then we are dealing with a systemic problem, not an isolated flaw. Regulators must reconsider their approach: instead of total surveillance, solutions are needed that truly protect users rather than creating new vulnerabilities.