There are unconfirmed reports that the proposed partnership between BAYC and Animoca brands will need KYC registration. Many NFT players have condemned the idea and even stated that they might not comply with such a directive.
A Hint About The KYC Measures
Many were alerted about the possible KYC registration after the official Twitter handle of Animoca brands tweeted about a new launch from the firm which would make KYC registration mandatory. The complaints regarding this idea are that a KYC registration effectively means that decentralization is no longer operational with owning an NFT with these firms.
Some BAYC users have stated that they have received a notification to fill out a KYC-like form as the form requested for their details, especially their licenses and address. Those who have received the form also stated that they were given a 2-week ultimatum to fill out and return the form.
Criticisms Against BAYC’s KYC Measures
However, many are yet to understand the details of this partnership even though a website is already available for it. Despite the unacceptable KYC measures, many users expressed their interest in participating in the BAYC-Animoca partnership deal.
Hong-Kong-based Animoca brands produce blockchain and non-blockchain-based games and are willing to explore the play-to-earn game sector. The inclusion of KYC measures might put the partnership between the two firms in jeopardy as many more people expressed their displeasure at the mandatory KYC registration.
Part of their grievances is that a KYC registration doesn’t conform with web3’s trustless principles. While some users argue that KYC registration will enable the government to monitor and control activities in the NFT sector, others opined that there should be clarity about what the KYC form entails besides asking them for their details.
While the announcement was only revealed a few hours ago and has received a barrage of criticisms almost immediately, one can only imagine the amount of more criticisms it will receive over the next couple of days. Nevertheless, authorities haven’t given up on crypto policing the crypto industry, including the NFT and DeFi sectors.
Devising Means To Monitor The Crypto Industry
Over the last few months, there have been increasing calls by the authorities to make KYC registration mandatory for the crypto sector. Strangely, some crypto players are supporting the authorities saying that the NFT sector needs KYC registration to lower the level of fraudulent activities affecting the sector.
These crypto players also claim that a government crackdown on the sector may happen soon unless the level of fraud in the industry reduces. Recently, the UK government seized NFTs as part of seizures in a fraud case. Hence, it is only a matter of time before other authorities do likewise.
Also, payment of taxes would likely revolutionize the crypto market especially as many people continue to hide their assets in crypto to avoid tax payments. The IRS has already written to congress to find the means of imposing greater control over the crypto market, especially in tax-related matters. Some nations such as South Korea exclude digital collectible owners from paying taxes.