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Here’s my thoughts about Bitcoin, KYC, and Coinbase. Why KYC is great for #bitcoin 
but terrible for Coinbase. 
but terrible for Coinbase.
Armstrong, the CEO of Coinbase has stated publicly he strongly opposes proposed government legislation that will require non-custodial wallets to comply with KYC regulations in order to receive Bitcoin from financial institutions.
Armstrong argues it will hinder crypto growth, but in reality, it will crush Coinbase’s monopoly and high fees.
The government can’t stop non-custodial wallets from transacting with each other, KYC or not.
The government can’t stop non-custodial wallets from transacting with each other, KYC or not.
What the government can stop is financial institutions like Coinbase from off ramping Bitcoin to non-custodial wallets that are not KYC compliant.
Every Bitcoin sent can be tracked backed to its origin of purchase. The financial institution who sold the Bitcoin has the buyers KYC info on file.
KYC regulation is less about Bitcoin and more about opening the gates of Bitcoin access for other financial institutions.
KYC regulation is less about Bitcoin and more about opening the gates of Bitcoin access for other financial institutions.
If proposed KYC regulation passes, all financial institutions instantly become on a level playing field with Coinbase.
Suddenly, financial institutions can sell and send Bitcoin directly to any non-custodial wallet that is KYC compliant.
Suddenly, financial institutions can sell and send Bitcoin directly to any non-custodial wallet that is KYC compliant.
Banks won’t need to build out complicated and expensive infrastructure to host custodial wallets for users. They can deliver Bitcoin directly to users KYC compliant wallets.
Creating more purchasing choices for Bitcoin users and 1000X competition for Coinbase.
Increased competition will lead to substantially lower Bitcoin fees.
Increased competition will lead to substantially lower Bitcoin fees.
Currently, Coinbase has an off ramp/on ramp monopoly with high fees.
They charge users both ways when they buy and sell Bitcoin.
What happens when Bitcoin can be sent directly from a KYC complaint wallet directly to a bank account?
They charge users both ways when they buy and sell Bitcoin.
What happens when Bitcoin can be sent directly from a KYC complaint wallet directly to a bank account?
Bitcoin users will no longer need Coinbase.
The government can’t stop non-custodial Bitcoin wallets from transacting with each other, but they can crush Coinbase’s Bitcoin monopoly of high on and off ramp fees.
The government can’t stop non-custodial Bitcoin wallets from transacting with each other, but they can crush Coinbase’s Bitcoin monopoly of high on and off ramp fees.
Last, but not least, regulation will crush Coinbase’s vast wealth of shitcoins.
KYC regulation won’t change Bitcoin. The opposite in fact - It will make Bitcoin only more valuable and powerful.
KYC regulation won’t change Bitcoin. The opposite in fact - It will make Bitcoin only more valuable and powerful.
I don’t know anyone in the Bitcoin community who loves Coinbase, only the VC’s who have made a fortune from investing in them.
Coinbase doesn’t care about you or your Bitcoin. They care about protecting Coinbase.
Don’t believe for a minute KYC is a bad thing for Bitcoin. It’s not. It changes nothing besides crushing Coinbase’s monopoly.
Don’t believe for a minute KYC is a bad thing for Bitcoin. It’s not. It changes nothing besides crushing Coinbase’s monopoly.
Shout out to @CounterpartyXCP, the fairest crypto to ever launch and the most under appreciated and undervalued crypto in the industry.
When KYC regulation passes, Counterparty ($XCP) will be the biggest benefactor of all.
When KYC regulation passes, Counterparty ($XCP) will be the biggest benefactor of all.
Since @CounterpartyXCP assets live on Bitcoin, all Counterparty assets will be able to be held in KYC Bitcoin compliant non-custodial wallets.
I suggest Coinbase to look into Counterparty, but that would be truly too American for them.
I suggest Coinbase to look into Counterparty, but that would be truly too American for them.
@CounterpartyXCP was built in the heart of SV where the developers paid thier own way just to own the native currency $XCP.
Armstrong pays no attention to @CounterpartyXCP, but he was more than happy to list the Chinese BCash
Armstrong pays no attention to @CounterpartyXCP, but he was more than happy to list the Chinese BCash
When the 
passes KYC legislation, it will decimate the Coinbase monopoly and destroy the shit coins Armstrong propelled for Coinbase’s financial gain.
passes KYC legislation, it will decimate the Coinbase monopoly and destroy the shit coins Armstrong propelled for Coinbase’s financial gain.
