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Comment by bastawhiz

It's worth noting that this offloads the KYC/AML component to someone else down the road, but doesn't protect you from possible money laundering risk (e.g., you send USDC to a sanctioned individual who launders it into monero or something else). I'm no lawyer but I did work on Stripe Connect's compliance pieces for five years and I would NOT take the risk of (as a business) sending money to USDC addresses without actually verifying identities.

It also doesn't offer you protection against fraud (which is a huge problem that marketplaces face).

Frankly the missing piece to this is a real, actual identity verification component. If you're not checking identities against sanctions lists at the absolute minimum, you're not doing your due diligence. I wouldn't take that risk. The last thing you need is to be on the receiving end of a US Treasury inquiry.

parent bastawhiz 2 months ago

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