Earlier quoted context omitted.
first by admitting that KYC wouldn't help stop terrorists even if it was implemented how you imagined it. Even Shapeshift wrote that in response to the WannaCry investigations. One hop to Monero and the whole money firewall regime is foiled, hopefully enough that the people of any nation ask their governments to stop spending their money on that task, and focus on the economy in more productive ways. KYC laws apply t…
> KYC laws apply to national currencies Assuming federal laws don't apply because you sprinkled some magic around you is a pretty awful way to end up in jail. KYC violations are criminally punishable. Anyone operating a non-compliant exchange is subject to investigation, arrest and asset freezes. Disclaimer: I am not a lawyer. This comment does not constitute legal nor investment advice.
AML/KYC apply to institutions that apply for Money Service Business licenses, MSBs for short. This is promulgated by FinCEN agency of the US Treasury department. FinCEN has comprehensive definitions of what kind of digital currency use is subject to MSB registration.
It is easy for digital currency to other digital currency exchangers to be exempt from those regulations, via one of the codified exemptions, because your straw man argument about federal laws not applying wasn't the argument I was making at all. So now that we've established that, let me know if you want to discuss the something closer to reality.