[robxorb]

It's true that all financial institutions are subject to KYC and AML laws. However, if you've ever used a crypto exchange versus a bank, or even just a prepaid debit card, you'll immediately see a massive difference in the application of those laws in terms of what you have to supply and how often.

It's not the crypto exchanges pushing for that - they actively work against it as it's a major expense as well as costing them customers.

Aside from exchanges, consider: cash itself is not targeted by these laws, which is crypto's closest existing analog. Do you need to submit KYC and AML documents to pull cash from your physical wallet and pay someone? Yet the push is for that level of involvement in your crypto wallets.

Finally, the SEC's actions for example are very clear: an obvious scammer like FTX gets a tick of approval and ends up reaming customers for billions. Whereas long-stable contributors such as LBRY or Ripple, get bogged down with heavy-handed enforcement. There are more examples.

HSBC was legally found to be actively engaged in facilitating criminal gangs, money-laundering etc. They paid a fine. You think a crypto exchange found to be doing those things would pay a fine? No, the executives would be jailed.

There's a big difference in application, across the board.

[nl]

I’m moderately familiar with exchanges. I've had quite a lot to do with them including being involved in a coin listing.

I notice substantially lower documentation requirements for a crypto exchange vs a bank. For example for both Binance and Gate (and I think Coinbase - not entirely sure there) I only had to supply a single identification document. For my bank accounts I've never been able to open one with less than 3 documents.

Not sure what your point about HSBC is. If you think SBF or CZ shouldn't be in jail then I don't know what to say. In the case of HSBC I'm not aware of individual witness accounts of deliberate criminal behaviour of individuals like both CZ and SBF did. But I absolutely agree people should have gone to jail.

In general crypto people seem to disagree with the idea of laws - specifically ones that apply to them. When challenged they resort to whataboutism or conspiracy theories. It's a set of weak arguments and really lays bare the weak intellectual foundation the whole crypto industry is based on.

[robxorb]

> I notice substantially lower documentation requirements for a crypto exchange vs a bank.

I notice the reverse though it does vary by jurisdiction.

I described FTX as an "obvious scam", citing it as an example of the SEC greenlighting a bad actor - so your speechlessness is the result of comprehension issues on your part.

It's not a "conspiracy theory" to hold a different opinion to you regarding financial policy direction.

What I regard as "weak" is the use of such derogatory labels, rather than proper discussion.

Good day!