The sting into the Bitcoin wasp nest: Raoul Pal doesn’t think KYC is so bad
Raoul Pal is actually a Bitcoin bull. With his theses on the need for crypto-regulation, he now turns privacy-oriented Bitcoiners against himself on Twitter. The opinion echo.
For once, he has not made any friends. Raoul Pal is actually known for his support in the traditional financial sector. The former hedge fund manager and CEO of the financial Crypto Cash medium Real Vision is considered a confirmed Bitcoin bull and brings the value proposition closer to a less crypto-affine audience in weekly updates.
Recently, Pal even founded his own division, Real Vision Crypto, which is dedicated solely to the good and bad of BTC and Co. However, the entrepreneur caused a sensation with a tweet that the Bitcoin community did not like very much.
If you think that secrecy from governments and no KYC is bitcoins future then you don’t understand what adoption looks like. They will regulate it. You will declare it. You will have to do KYC and that is fine. It doesn’t take away its store of value but just integrates it.
– Raoul Pal (@RaoulGMI) November 26, 2020
If you believe that secrecy from governments and not KYC is the future of Bitcoins, then you do not understand what the distribution looks like. Bitcoin will be regulated. KYC will have to be done, and that is fine. That doesn’t take away Bitcoin’s value proposition, it just reinforces it.
KYC (know your customer) is an unpopular term in Bitcoin circles
It is the practice of assigning exchange accounts to a clear name that provides information about the crypto activities of the respective person in case of doubt. This is common practice for opening bank accounts in the traditional financial sector.
But Bitcoin wants to be an alternative to the traditional financial sector – from the community’s point of view, KYC infiltrates Bitcoin’s resistance to censorship and thus a fundamental feature that makes Bitcoin what it is. The resistance on Twitter was correspondingly strong.
Privacy is not a crime; KYC is not „fine.“ https://t.co/b58VTwcf3j
– Jameson Lopp (@lopp) November 26, 2020
Privacy is not a crime. KYC is not „all right“.
Outrage was expressed above all at the fact that Pal, himself based in the tax haven of the Cayman Islands, stands for the arrogance of the traditional financial sector from the point of view of the Bitcoin community. Of course, those who live in democratic constitutional states need not fear persecution by the state if he or she uses Bitcoin. But not all Bitcoins have this luxury.
Alex Gladstein, Chief Strategy Officer of the Human Rights Foundation, also pointed out the need for private money and encryption techniques.