ZachXBT vs. KYC: "A Useless Tool," and He's Ready to Reveal Evasion Techniques
Renowned on-chain detective ZachXBT has sharply criticized the practice of identity verification (KYC) in the crypto industry, calling it one of the most useless types of data for investigations. Moreover, he stated that the topic radicalizes him to such an extent that he is ready to soon publish public instructions on bypassing excessive control.
According to ZachXBT, KYC benefits only malicious actors. He pointed out a paradox: when a company is hacked, its management often bears no legal responsibility for the theft of user funds, despite the fact that KYC data becomes a "goldmine" for hackers. The analyst posed a rhetorical question: why does the state effectively force people to pay up to $100 on the black market for access to basic privacy?
The dispute over verification intensifies
This statement was a response to a post by ShapeShift founder Erik Voorhees, who warned that KYC might soon be required even to use a computer. Voorhees emphasized the danger of the spread of mandatory identification on the internet.
Cryptographer Matthew Green from Johns Hopkins University also joined the discussion. He noted that under the guise of protecting minors, an infrastructure is being built that ultimately ties a person's real name to every action they take online. Green believes the goal is not age verification but rather identity identification.
How privacy technologies can turn into surveillance
Green described a phased scenario for deploying such a system. First, age verification would be introduced for access to some content, using technologies supposedly protecting privacy. Then, the inevitable question would arise: under what conditions would law enforcement agencies gain access to this data? According to his assessment, this would require "refining" private technologies so that they store the user's true identity in a depository with every website visit.
Access to such data, according to the expert, would first be opened by warrant, then by request, and eventually integrated into mass scanning systems. At the same time, as Green emphasized, the stated goals—combating grooming and child sexual abuse material—would not be achieved, as these indicators have never decreased due to such measures.
Cryptalist comment: This dispute is not just a theoretical discussion. It reflects a fundamental conflict between regulatory pressure and the basic principle of cryptocurrencies—financial freedom. If KYC becomes mandatory for internet access, it would effectively destroy anonymity as a concept, and cryptocurrencies would lose one of their key advantages. I am closely following the development of this topic, as it could radically change the landscape of digital assets.