[HN Gopher] We have 4 days to contest KYC being required by inte...
       ___________________________________________________________________
        
       We have 4 days to contest KYC being required by internet services
        
       Author : chadsix
       Score  : 419 points
       Date   : 2024-04-25 15:31 UTC (7 hours ago)
        
 (HTM) web link (www.federalregister.gov)
 (TXT) w3m dump (www.federalregister.gov)
        
       | chadsix wrote:
       | Submission Statement:
       | 
       | We have exactly 4 days to leave comments to the Federal
       | Government of the United States of America contesting the
       | requirement of KYC by internet service providers.
       | 
       | This law is not conducive to a free internet/society.
        
         | plus wrote:
         | I ask this 100% genuinely, since this isn't a subject I've ever
         | given any mind to. Why should we oppose this? What are the
         | potential negative outcomes if this goes through? Can you
         | steelman the argument for why people support this, and explain
         | why you find the arguments unconvincing?
        
           | Takennickname wrote:
           | Provides the prerequisites for an authoritarian regime when
           | they inevitable coopt the internet
        
             | IfOnlyYouKnew wrote:
             | Well some authoritarian regime would otherwise just do it
             | whenever it got started, and it would require maybe a week?
        
           | mistrial9 wrote:
           | why recreate this important argument with coffee? The Berkman
           | Center at Harvard or one hundred other places has decades of
           | written policy work and case studies on these topics ..
        
             | plus wrote:
             | I would also find a link to those arguments to be
             | satisfactory.
        
             | tomalpha wrote:
             | I too would have asked the same question as GP, and also
             | meant it genuinely. It feels like HN is a place where
             | someone could summarise the (presumably strong) arguments
             | against this? Or links to a good source as suggested by a
             | sibling comment.
        
           | CalRobert wrote:
           | I think that the biggest argument in favour is that it would
           | remove anonymity on the internet, at least from governments,
           | and that could enable law enforcement to more easily find
           | people committing real crimes. CSAM, scams, etc.
           | 
           | I think the biggest argument against it is that this removes
           | anonymity on the internet, at least from governments, and
           | that would remove people's ability to freely voice their
           | opinions without fears of repercussions (will the first
           | amendment ever be modified? Will people who discuss what it's
           | like to be an illegal immigrant/drug user/etc. be
           | persecuted)? Also, it raises the question of what happens to
           | users of VPN's, public internet, etc.
        
             | ameister14 wrote:
             | Does this actually remove anonymity on the internet?
             | 
             | It seems to de-anonymize a set of IaaS customers, sure; but
             | that's not nearly the same thing as removing anonymity
             | completely. I've only just scanned this but it seems at
             | first glance to mean that a foreign company can't
             | anonymously spin up an AWS instance, that's all. Am I
             | reading this incorrectly?
        
               | generalizations wrote:
               | It establishes the principle, so that later it can be
               | expanded by degrees. The trick is to oppose the principle
               | so that it can't be expanded later.
        
               | kjkjadksj wrote:
               | This can't be the only way to de anonymize an internet
               | user today
        
               | RAM-bunctious wrote:
               | A set? Only US customers are unaffected, i.e. 96% of the
               | planet would no longer be able to use AWS (or anything
               | similar based in the US, all the way down to simple web
               | hosting or e-mail services) without going through KYC.
               | 
               | There are so many things that can fall under the IaaS
               | bracket. Think anything 'cloud'. Maybe that's not how
               | they'll apply it, but legally they are free to do so.
               | It's a huge reach.
        
               | joh6nn wrote:
               | The only away for US citizens to prove that they are such
               | would be for them to also submit their IDs. So it affects
               | everyone.
               | 
               | Basically, it forces providers of a very wide variety of
               | tech related services to collect identifying info on
               | anyone who uses their services, and then store that info
               | to either eventually be exposed in a breach, subpoenaed
               | by the government, or sold to the highest bidder (might
               | as well monetize it if you're forced to collect it )
        
             | throwup238 wrote:
             | _> ...directs the Secretary of Commerce (Secretary) to
             | propose regulations requiring U.S. Infrastructure as a
             | Service (IaaS) providers of IaaS products to verify the
             | identity of their foreign customers..._ (from TFA)
             | 
             | This is about IaaS not "internet services". It doesn't
             | remove anonymity from internet users, just _foreign_
             | customers renting cloud servers and other infrastructure.
        
               | mikegreenberg wrote:
               | It seems the definition of IaaS Products could very well
               | extend to ISPs:
               | https://www.federalregister.gov/d/2024-01580/p-46
               | 
               | > This proposed definition adopts the E.O. 13984
               | definition for "Infrastructure as a Service product",
               | which is any product or service offered to a consumer,
               | including complimentary or "trial" offerings, that
               | provides processing, storage, _networks_ , or other
               | fundamental computing resources, and with which the
               | consumer is able to deploy and run software that is not
               | predefined, including operating systems and applications.
               | 
               | How would an ISP not be misconstrued as a "managed
               | network"? Deploy/run software could just as easily be
               | running some protocol over the network connection?
               | 
               | Sure, there are very few international ISPs which would
               | be affected by this as physical infrastructure must be
               | local to the user, but I wonder if this would be true
               | always (e.g.: Starlink)
        
               | pavon wrote:
               | I can't see how an ISP (or VPN for that matter) would
               | qualify for the second half " _and_ with which the
               | consumer is able to deploy and run software that is not
               | predefined, including operating systems and applications.
               | "
               | 
               | This would apply to all hosting providers, which is bad
               | enough.
        
               | ramenbytes wrote:
               | Internet connections can be used to SSH into a box to
               | deploy and run software. IANAL, but I could see that
               | catching ISP's and VPN's.
        
               | mikegreenberg wrote:
               | Some counterexamples:
               | 
               | - TCP is a spec delivered by a software implementation
               | program. Maybe you disagree that TCP is being "deployed"
               | as opposed to "used"?
               | 
               | - What about peer-to-peer hosted webpages? Certainly this
               | is deployed software served over the internet connection?
               | 
               | The devil is in the details... details which are not
               | specified in the order. It wouldn't be hard to imagine a
               | lawyer arguing the finer details of "deployed" and
               | "software" and falling on a definition which results in a
               | less "open" Internet.
               | 
               | Also, I think of the meaning of "that is not predefined"
               | is not at all clear. Predefined at what point in time?
               | 
               | IANAL.
        
               | joh6nn wrote:
               | how will US customers prove that they're not foreign
               | customers?
        
           | chadsix wrote:
           | It is great that you ask a question, because we live in a
           | world with the freedom to opine on things. What could be
           | considered a massive issue to me may not be a massive issue
           | to another; and if we feel the world will be better by
           | debating our positions, we have the right to do so.
           | 
           | Today, anonymity and pseudonymity exist and allow people to
           | speak freely without risk of backlash for having a different
           | opinion as often times the right opinion may differ with that
           | of social consensus.
           | 
           | If KYC is introduced, the ability to maintain freedom of
           | speech, online, will likely diminish.
           | 
           | This is of negative consequence to the people of the world.
           | 
           | Further, with internet 'forever data', LLM NLP and so forth,
           | character profiles are too easy to develop for people which
           | can cause further harm as we begin segregating based on said
           | profiles.
           | 
           | I believe this KYC requirement can even extend to blockchain
           | node operators and so forth as well.
           | 
           | These are just a few reasons but there are many more.
        
             | EGG_CREAM wrote:
             | This doesn't seem to affect users of internet services,
             | though. It's just IaaS, so things like AWS. With that
             | limited scope, what is the adverse affect of KYC laws on
             | freedom of speech?
        
               | zamubafoo wrote:
               | How much longer before IaaS platforms require their
               | customers to also have similar KYC policies in their ToS
               | to be able to shift liability downward in case anything
               | goes down?
        
               | carl_dr wrote:
               | This law already includes platforms that resell IaaS. So
               | about 4 days.
        
               | chlodwig wrote:
               | It affects all web hosts, so if you want to lease a
               | server in order to install Wordpress or Mastodon you
               | would need to submit your identification to the provider.
        
               | rsync wrote:
               | I think it effectively affects all web hosts... Certainly
               | how we expect them to work in 2024...
               | 
               | But remember that you can have a perfectly effective web
               | host that simply accepts HTML uploads.
               | 
               | Certainly a tremendous loss of convenience and features
               | but speech itself could still be available under this
               | regime...
        
             | _tk_ wrote:
             | I'm not in favor of this rule, but it seems to me you are
             | conflating several issues into one without showing the
             | effect of the rule. Can you explain how the rule that would
             | be implemented causes these effects? I do not see the
             | connection here.
        
           | switch007 wrote:
           | It's on the parties sponsoring and proposing the law to
           | rigorously explain the benefits (and to discuss any
           | negatives). Maybe go ask them?
        
           | chlodwig wrote:
           | This would make it illegal to anonymously run your own
           | Wordpress install or Mattermost/groupchat server, you would
           | have to reveal your identity to the web host. Do you trust
           | the powers-that-be to never use this information to find and
           | punish dissidents?
        
           | yamazakiwi wrote:
           | One example I've seen is a less-than-savory company make a
           | purposefully confusing KYC process after purchase of their
           | service/product to prevent users from realizing they're being
           | scammed and are kept in KYC hell hoping to get verified when
           | they never will. Time to start an ISP...
        
         | drakythe wrote:
         | This is not about Internet Service Providers. This is about
         | Infrastructure as a Service providers, e.g. AWS, Linode, Azure,
         | GoDaddy, etc.
         | 
         | See https://www.federalregister.gov/d/2024-01580/p-46 for their
         | definition.
         | 
         | Misrepresenting what this is about is not helpful.
        
           | spxneo wrote:
           | im not sure i understand are customers of
           | AWS/Linode/Digitalocean now required to submit
           | passport/drivers license to host a blog or website?
        
       | CalRobert wrote:
       | I suppose VPN's will become illegal next?
        
         | webdoodle wrote:
         | Those in authority don't want us sharing information with
         | anyone they can't track. So many of the websites I use are
         | already blocking VPN access, and it's only getting worse.
         | Codifying it as law will just be the last step to protect the
         | censors from prosecution for violating the 1st Amendment.
        
       | systemvoltage wrote:
       | Unconstitutional.
        
         | freeone3000 wrote:
         | Is it? How? Which bit of KYC for SaaS violates which right?
        
           | kolanos wrote:
           | Isn't this a clear violation of the 4th amendment?
           | 
           | > "The right of the people to be secure in their persons,
           | houses, papers, and effects, against unreasonable searches
           | and seizures, shall not be violated, and no Warrants shall
           | issue, but upon probable cause, supported by Oath or
           | affirmation, and particularly describing the place to be
           | searched, and the persons or things ...
           | 
           | Note it says "the people" and not "citizens of the United
           | States". Everyone has this protection within U.S. borders,
           | SCOTUS has ruled to this effect.
           | 
           | So the government forcing yet more private companies to do
           | their unconstitutional bidding seems like something that
           | should b opposed. I believe banks being required to collect
           | KYC came about through The Patriot Act. If this trend
           | continues, you'll need to verify your identity to use any
           | service.
        
             | freeone3000 wrote:
             | That isn't just a trend, that's actually this proposed rule
             | change!
             | 
             | Banks collecting KYC actually started with the Banking
             | Secrecy Act of 1970. This was tried in the Supreme Court
             | case California Bankers Association v Schultz (1974). It
             | holds that recordkeeping requirements do not constitute a
             | privacy violation under the 4th amendment absent reporting
             | requirements. Since this new rule (2024) applies only to
             | foreign entities and OFAC controls provide penalties for
             | domestic companies, there's no fifth amendment issue either
             | (which is a shame imo, the 5th amendment argument in
             | Bankers v Schultz seems incredibly shaky).
             | 
             | There's no reporting requirements or new crime being
             | created here; the intention is to ""aid"" IaaS providers in
             | complying with OFAC requirements, and, when a warrant is
             | issued, the actual identities of the customers to be known.
        
             | pessimizer wrote:
             | > If this trend continues, you'll need to verify your
             | identity to use any service.
             | 
             | Once we started to send "National Security Letters" to
             | public libraries after PATRIOT to find out what people were
             | reading, this future became an inevitability.
        
         | greyface- wrote:
         | https://en.wikipedia.org/wiki/Commerce_Clause
         | 
         | If it imposed KYC on intra-state customers, or non-commercial
         | services, then it would be a different story.
        
         | Zak wrote:
         | What provision of the constitution does it violate? Do you know
         | of court precedents that support that claim?
         | 
         | I'm not writing this to argue against your position, but to
         | help people craft effective comments to submit in response to
         | the proposed regulation. Federal agencies are not responsive to
         | comments about people disliking a proposed rule, but are very
         | responsive to concrete examples of why it might be legally
         | problematic.
        
           | kolanos wrote:
           | The fourth amendment?
           | 
           | > "The right of the people to be secure in their persons,
           | houses, papers, and effects, against unreasonable searches
           | and seizures, shall not be violated, and no Warrants shall
           | issue, but upon probable cause, supported by Oath or
           | affirmation, and particularly describing the place to be
           | searched, and the persons or things ...
        
             | EGG_CREAM wrote:
             | How does verifying your identity in any way violate that,
             | though? You have a physical address that you live at, and
             | the government verifies that you are the person living at
             | that address, and that is not violating the fourth
             | amendment. This would be pretty similar to that.
        
               | lcnPylGDnU4H9OF wrote:
               | Of course the words are open to interpretation but
               | "unreasonable searches" seem to encompass this sort of
               | thing. Usually it's taken case by case and reasons would
               | need to be given for every individual being searched.
               | This is a blanket excuse to search every interaction
               | without a reason.
        
               | kolanos wrote:
               | The fourth amendment requires probable cause of a crime
               | prior to being forced to identify yourself. This rule is
               | forcing companies to verify the identities of their
               | customers on behalf of the government for vague national
               | security reasons.
        
       | ChikkaChiChi wrote:
       | This does not appear to affect domestic customers.
        
         | noodlesUK wrote:
         | Then surely all the good actors have to do KYC, and all the bad
         | actors can just pretend to be American entities.
         | 
         | I don't agree with this on principle, but even just from a
         | practical perspective it seems like they are leaving the door
         | completely open by doing that. What's even the point?
        
         | Izkata wrote:
         | How would they know a customer is domestic or foreign without
         | some level of identification on everyone?
        
           | beaeglebeachh wrote:
           | Bingo. They'll have to KYC everyone to avoid liability of
           | missing a faking foreigner.
        
         | charlie0 wrote:
         | Yet.
        
       | waihtis wrote:
       | What an absolute nightmare. I would also be surprised if iaas
       | providers arent in vehement opposition, i will instantly migrate
       | all cloud resources away from AWS if they start requiring KYC
       | docs. Theres close to zero effort for doing so
        
         | viknod wrote:
         | Wow, what layer of abstraction do you have that allows for
         | that? Even with typical IaC, Terraform, it's going to be a
         | rewrite. If you're leveraging anything beyond load balancers,
         | compute, and containers I don't see how that approaches zero.
         | Some of the services could end up with you having to build/run
         | your own to get any equivalence.
        
           | k8svet wrote:
           | Why is it so hard time for some of this site to understand
           | that some of us are principled when it comes to choosing
           | technologies? Or you know, actually learned from past trauma
           | and make choice to avoid getting burned in the future.
        
             | Sxubas wrote:
             | Not all of us are enlightened. Wouldn't you mind telling us
             | what those technologies are?
        
               | nadermx wrote:
               | Ansible comes to mind. Used it to orchestrate hundreds of
               | servers with migrations. Could also simply set up proxmox
               | services beforehand if you're truly motivated, then just
               | replicate the server to another instance.
        
               | thedaly wrote:
               | And all networking configuration and everything else is
               | transferred with close to zero effort?
        
               | zamalek wrote:
               | You could roll your own SDN with the likes of wireguard.
        
             | rabuse wrote:
             | Exactly. At the startup I work for, we built from the old
             | methods of bare metal, and integrate cloud services as
             | needed. At any time though, if we are not satisfied with
             | sed service, we're able to jump ship without headache
             | pretty easily. As simple as spinning up a new container
             | cluster elsewhere, migrating data, and ramping down the
             | old. The founders were very clear on never being entrenched
             | into a singular provider.
        
         | patricklorio wrote:
         | I think this is about preventing sanctioned countries or
         | individuals using US technology we don't want them to have
         | access too (like China not having modern GPUs). That goal seems
         | reasonable though there's always a fear that the law is way
         | broader than the high level intent. Why would it be "an
         | absolute nightmare" if it's so easy to migrate?
        
           | waihtis wrote:
           | I meant an absolute nightmare of a bill in general and for
           | the IaaS providers. The US is winning the AI race because of
           | their open ecosystem and capability to execute and these
           | types of things hurt that bad.
        
       | AdamH12113 wrote:
       | For those who didn't know, KYC stands for "know your customer".
       | It's a good idea to spell out abbreviations the first time
       | they're used, especially since the abbreviation itself is not
       | used in the linked article. It's also worth noting that the
       | proposal is about US infrastructure as a service (IaaS) products
       | specifically, not "internet services" in general.
        
         | SOLAR_FIELDS wrote:
         | Yeah this is a very industry standard term in banking and
         | anyone in that industry is going to immediately know what you
         | are talking about, but outside of that industry, chances are
         | high that a layman will not
        
           | gdcbe wrote:
           | In the past that would be true. But given most blockchain
           | platforms require it, I imagine it is more widely known in
           | the tech-savy hn-like realms?
           | 
           | Then again I worked on blockchain tech around half a decade
           | ago, so I might be knowledge biased here?
        
             | rangerelf wrote:
             | Definitely biased. I had no idea what KYC means. I don't
             | think typing it out fully once at the beginning is too much
             | to ask, is it?
        
               | gdcbe wrote:
               | No definitely not, I fully agree with you and others
               | there. Just was a bit surprised by how many of you were
               | there. But that's okay. Days where we learn are rich
               | days. The richest of them all.
        
               | reaperman wrote:
               | In defense of the person who wrote the HN title, I've
               | seen KYC discussed in front-page articles roughly weekly
               | for the past several years straight. I've learned about
               | as much of it as I care to know (and more, honestly) from
               | HN comments on 1st and 2nd page posts in that time. In
               | just the past year, I can see that there have been about
               | 1,000 comments mentioning KYC, and about 21 1st/2nd page
               | posts that are explicitly about KYC (nearly 2 per month).
               | Honestly I don't expect all of HN to know what KYC is,
               | but I did expect most HN readers to have a general idea
               | of what it is and why it's a huge pain for a small % of
               | people (but very large number, 1% of the USA is still >3
               | million people).
               | 
               | Once you're familiar with it, your brain/eyes key onto
               | "KYC" much more strongly than "know your customer". I
               | might have missed the latter, but "KYC" in the title
               | grabbed my attention instantly and reading the title made
               | my heart jump a bit, because generally KYC means a pain
               | in my ass, and even moreso for friends here on visa.
               | 
               | I have a Canadian friend visiting and staying with my
               | girlfriend and I for a month or so. KYC causes actual
               | headaches for her, to the point that she just decides not
               | to get cellular service at all while she visits unless I
               | get a pre-paid SIM under my name and hand it to her. When
               | she pays for things like restaurants, I can't just
               | Venmo/Paypal/Zelle/ApplePay her back on the spot, I have
               | to withdraw cash at some point and coordinate giving it
               | to her.
               | 
               | The general concept of "KYC" makes sense for some
               | situations, but actual implementations really fucking
               | suck for a lot of people. It's very scary to me to see it
               | be required for more and more categories of services
               | because of the way it's currently implemented.
        
               | cynusx wrote:
               | Maybe less important than knowing what it stands for is
               | knowing what the implications are for businesses.
               | 
               | KYC is essentially about knowing who you are doing
               | business with.
               | 
               | For individuals that's relatively easy, just the name and
               | identification is required but typically there is the
               | need to verify that the identification actually belongs
               | to the person signing up. In banking that's why you
               | typically have some video call with a verification
               | provider.
               | 
               | For businesses it gets a lot more complex because it's
               | not enough to know what business your client is, you also
               | have to look through its corporate structure to figure
               | out who the "ultimate beneficial owner" is. Essentially,
               | who is actually controlling the business.
               | 
               | Now it got a lot easier recently as many countries now
               | require businesses to file who their ultimate beneficial
               | owners (UBOs) are.
               | 
               | The painful part is that it introduces friction in
               | customer journeys as now you have to request the
               | documentation.
               | 
               | In the financial industry you also have to run checks on
               | those UBO's so that they are not known terrorists or
               | sanctioned individuals but it seems this regulation is
               | just that IaaS providers need to know who actually
               | operates a server. Presumably for forensic analysis after
               | a cyber attack.
        
             | AdamH12113 wrote:
             | I posted my comment because the linked proposal itself
             | never uses the abbreviation "KYC" and none of the early
             | comments spelled it out, so if (like me) you didn't already
             | know what it means a quick Ctrl-F wouldn't help.
             | 
             | The proposal seems to use the term Customer Identification
             | Program (CIP) instead, mentioning KYC (spelled out) only
             | once, in the introduction:
             | 
             |  _> Section 1 of E.O. 13984 requires the Secretary to
             | propose, for notice and comment, regulations that mandate
             | that U.S. IaaS providers verify the identity of foreign
             | persons that sign up for or maintain accounts that access
             | or utilize U.S. IaaS providers ' IaaS products or services
             | (Accounts or Account)--that is, a know-your-customer
             | program or Customer Identification Program (CIP)._
        
             | thomastjeffery wrote:
             | A very significant percentage of us (I suspect a large
             | majority) haven't really bothered with blockchain tech.
             | Blockchain tech doesn't solve any problems that most of us
             | actually need solving.
        
           | ZephyrBlu wrote:
           | KYC is that poorly known? I would have expected most white-
           | collar professionals to have at least heard of it.
        
             | kube-system wrote:
             | If someone knows about KYC because of their profession,
             | they are quite literally the opposite of a layperson.
        
             | gedy wrote:
             | I thought it was a zipper manufacturer tbh
        
           | pwenzel wrote:
           | I assumed this had something to do with fried chicken
        
           | jandrewrogers wrote:
           | Unfortunately, KYC has been bleeding into far more commercial
           | interactions over time. I now deal with KYC multiple times
           | per year in unrelated contexts and I don't work in finance.
           | It has become quite intrusive.
        
         | erie wrote:
         | synthesia requires KYC:" Your avatar can be created only with
         | your explicit consent, following a thorough KYC-like procedure.
        
         | nightpool wrote:
         | Google is your friend
        
         | buildbuildbuild wrote:
         | In practice this often means requiring a photo ID scan.
        
           | hn_throwaway_99 wrote:
           | It depends, but I'd say not usually. Many financial service
           | applications, which have strict KYC requirements, just
           | correlate different data sources to ensure everything matches
           | up, and tries to determine some level of risk about the
           | client making the application (i.e. match applicant name with
           | DOB with SSN with known addresses, etc.) FWIW, given the huge
           | number of data breaches I'm not sure why that info is
           | sufficient, but it usually is. It's only when some backend
           | risk engine determines "This data doesn't match up, or this
           | client looks sketchy" is a photo ID requested.
        
         | AnimalMuppet wrote:
         | In fairness, though, HN has a limit on title length, so I'm not
         | sure it was all that possible in the headline here.
        
           | andybak wrote:
           | > We have 4 days to contest "Know Your Customer"
           | 
           | would have been a better title. The missing information is
           | more easily guessed from skimming the article than the
           | mystery acronym.
        
         | lumb63 wrote:
         | It also looks like it only applies to foreign peoples? That
         | said, I don't know how you select for only foreigners without
         | collecting identity.
        
           | freedomben wrote:
           | Yeah that's a clever way to avoid having the rules struck
           | down as unconstitutional. In practice though to avoid
           | liability and possibly jail time, providers will have to
           | assume that every customer is a foreigner until they "prove"
           | their US citizenship (by uploading the same ID and other
           | documentation required by foreigners).
        
             | ssaannmmaann wrote:
             | Resulting in AT&T 2.0 data breach. Already dealing with the
             | consequences of our SSN#s being leaked in AT&T 1.0 breach.
        
               | ranger_danger wrote:
               | Can you name some of those consequences?
        
         | willmadden wrote:
         | KYC in the context of internet services stands for "violating
         | the 4th Amendment".
        
           | ryanisnan wrote:
           | I don't disagree with your premise that KYC enables
           | governments to violate the 4th amendment, but in general, for
           | certain industries this is just generally a _really_ good
           | idea. Banking is the first industry where I encountered KYC,
           | and it strikes me as being obviously good there.
           | 
           | Isn't effectively the majority of what the Snowden leaks
           | covered essentially violating the 4th amendment?
        
             | willmadden wrote:
             | What is being proposed here will be used as a tool of fear
             | by the government to suppress speech it doesn't like.
             | 
             | Comparing what one individual did in the past to a formal
             | government policy doxxing away peoples' 4th amendment
             | rights is a strawman argument.
        
               | ryanisnan wrote:
               | I think we don't understand each other. I'm not giving a
               | moral or legal judgement on what Snowden in particular
               | did. I'm saying, the information he disclosed showed a
               | vast and total violation of American's 4th amendment
               | rights on behalf of the US government.
               | 
               | This KYC requirement seems to me, at a glance, as being a
               | small erosion of our digital privacy.
        
               | freedomben wrote:
               | You're not wrong, but there is an important big
               | difference between this and the Snowden revelations: The
               | Snowden stuff was illegal and was being done in secret,
               | and once exposed they had to stop. It was considered bad
               | and embarrassing. This would be _legal_ , and will set a
               | strong precedent.
        
             | always2slow wrote:
             | >Banking is the first industry where I encountered KYC, and
             | it strikes me as being obviously good there.
             | 
             | This is not obvious to me as my experience has been largely
             | negative post-KYC/9-11 vs pre-KYC/9-11. I am a legal law
             | abiding citizen [and voter!] and it's just added extra
             | hassle on various occasions and then the background anxiety
             | of knowing an institution with crappy security track
             | records hold a photocopy of my ID. And yet all the things
             | KYC was supposed to prevent still continue unabated: money
             | laundering, terrorist financing, identity theft, and
             | financial fraud.
             | 
             | I'm curious to hear why you think it's obviously good and
             | if you were using these services before KYC.
        
               | willmadden wrote:
               | The people who donated to the Canadian truckers' protest
               | had their accounts frozen by the Trudeau regime because
               | of KYC.
               | 
               | The problem is that there are no checks and balances
               | preventing banks from freezing assets because they want
               | to or the government told them to.
               | 
               | Banking needs to be a right, and unless someone is
               | convicted of a crime involving the bank account's assets,
               | banks and governments should not be able to freeze them.
               | There can be exceptions for fraud like FTX where there
               | will be a significant financial harm to other individuals
               | if the assets aren't frozen, but what we have today is
               | unchecked government financial terrorism against
               | individuals they do not like, and now they want to extend
               | that terrorism to speech.
        
               | ryanisnan wrote:
               | I am familiar with KYC from a banker's perspective (at
               | least that of a close relative who was a bank manager).
               | 
               | KYC helped them by deny-listing abusive clients between
               | branches, or by allowing the bank to develop heuristics
               | for things like allowing customers to bypass cheque
               | clearing times.
               | 
               | From an end-user perspective, I've had no hangups
               | personally but I do share your grievances about yet-
               | another-shoddy institution holding a photocopy of my ID.
               | My bank truncates passwords when setting them, and when
               | logging in, without telling the user. It boggles the
               | mind.
        
               | always2slow wrote:
               | Thanks for replying I appreciate the insight, although as
               | someone else mentioned the most obvious use (to me) for
               | KYC is censorship / de-banking and I think that was it's
               | intended purpose all along because there's nothing about
               | KYC that specifically enables the two things you
               | mentioned that couldn't be done by a bank on it's own.
        
             | rangestransform wrote:
             | KYC basically means that the job of collecting evidence to
             | prosecute potential (read: non-existent yet) crimes has
             | fallen to yourself and your bank/cloud provider/etc.,
             | rather than forcing the government to collect evidence to
             | prosecute a crime. Essentially an end-run around the 4th
             | amendment and the whole idea of "innocent until proven
             | guilty".
        
           | oliv__ wrote:
           | Thank God for the Constitution
        
       | IfOnlyYouKnew wrote:
       | This is about foreign customers only, so as an attempt to abolish
       | the constitution, it is severely flawed in respecting it enough
       | to keep its distance.
       | 
       | I can't think of any US service I am using that doesn't already
       | require KYC? None of the large providers will let you get far
       | without a credit card, as far as I remember?
       | 
       | Since the discussion here will consider itself mostly with
       | upright revolutionaries being disenfranchised by such insult to
       | their liberties, it is worth noting that when the revolutionaries
       | are foreigners, the US often doesn't have the same incentive to
       | disenfranchise them as it might have for domestic troublemakers.
       | 
       | In fact the US has quite a track record of granting rights to
       | foreigners in excess of what they find at home, and even when it
       | concerns allies: request by European courts and law enforcement
       | are regularly rejected based on US norms when, for example,
       | someone hosts their hat speech blog with an US-only provider.
        
         | axus wrote:
         | And FISA was only about surveilling non-US persons.
        
           | IfOnlyYouKnew wrote:
           | No. With a court order, FISA always allowed surveillance of
           | "agents of foreign powers", even if they were US citizens: ht
           | tps://en.wikipedia.org/wiki/Foreign_Intelligence_Surveilla...
           | .
        
         | loeg wrote:
         | Providing a credit card is a far cry from KYC. But it also
         | highlights that we probably don't need IAAS businesses to
         | implement KYC as long as the payment providers already do.
        
         | eks391 wrote:
         | > I can't think of any US service I am using that doesn't
         | already require KYC? None of the large providers will let you
         | get far without a credit card, as far as I remember?
         | 
         | There are several credit card vendors that do not require KYC
         | that are easily available. I don't know of any banks that don't
         | require KYC that you would use to pay those CC bills, but I
         | wouldn't be surprised if they exist.
        
       | oshout wrote:
       | Skimming through the article, it seems like the extent of this is
       | to require IAAS (Infrastructure) providers to verify the identity
       | of those who are using their services to train AI. It's an
       | attempt to stymie sanctioned or malicious actors, from training
       | AI and especially from hopping between services or using aliases
       | to continue training on their model.
       | 
       | It seems a bit benign and I don't understand the parallels others
       | on this HN discussion are making. Is it that it's a slippery
       | slope or perhaps I'm being naive in regards to the scope?
        
         | chadsix wrote:
         | AI is mentioned, but the scope is significantly larger if you
         | read the fulltext.
        
           | kube-system wrote:
           | Given that top GPUs are sanctioned, I'm sure preventing
           | access to them remotely is a part of this. But just generally
           | speaking, doing any malicious crap out of an EC2 instance is
           | an easy way for a foreign actor in China/Russia/Iran to look
           | more legit.
        
           | lolinder wrote:
           | It's still just for IaaS companies, though, right?
           | 
           | Not that that makes this all okay, but it is a much more
           | limited proposal than "internet services" makes it sound.
        
             | chadsix wrote:
             | Legally speaking, internet service providers are
             | infrastructure providers.
        
               | lolinder wrote:
               | Do you have a basis for this claim or are you just
               | throwing it out there to see if it catches on? The
               | document linked refers to IaaS, which as an acronym
               | definitely does _not_ include ISPs.
        
               | erie wrote:
               | Some AI services such as Synthesia
               | https://www.synthesia.io > ethics " Your avatar can be
               | created only with your explicit consent, following a
               | thorough KYC-like procedure. Complete control: Our
               | platform ensures you can decide"
        
               | chadsix wrote:
               | There are probably very few ISPs that can fall outside of
               | this standard. For example if your provider provides
               | e-mail, it's providing infrastructure. And yet, the slope
               | can get much more slippery than this.
        
               | zinekeller wrote:
               | Please read EO 13894 before proceeding further. Is the
               | user able to run custom software directly with a
               | customary ISP (because that's in the definition)? I agree
               | with EGreg that they can possibly twist this, but as
               | written it's actually narrower than you think.
        
               | EGreg wrote:
               | In practice, as long as a definition can conceivably
               | cover something, the DOJ or some agency will use it. Case
               | in point from yesterday: money transmitter as applied to
               | arresting the developers of a NON-CUSTODIAL wallet, as
               | part of a wider war on crypto mixing:
               | 
               | https://www.coindesk.com/policy/2024/04/24/samourai-
               | wallet-f...
               | 
               | This comes amid a war on end-to-end encryption, and so
               | on. It's not like they are going to stop here.
        
               | devonbleak wrote:
               | Reading the definition
               | https://www.federalregister.gov/d/2024-01580/p-46 and the
               | paragraph following it, it's intentionally broad and i'd
               | say it's not that much of a stretch to say ISPs provide
               | services that match this.
        
               | zinekeller wrote:
               | Definitely not in this case (unless you're using Digital
               | Ocean as a VPN end point or something). EO 13984 (which
               | is cited as the enabling act) has a narrow definition:
               | 
               | (e) The term ''Infrastructure as a Service Product''
               | means any product or service offered to a consumer,
               | including complimentary or ''trial'' offerings, that
               | provides processing, storage, networks, or other
               | fundamental computing resources, _and with which the
               | consumer is able to deploy and run software that is not
               | predefined, including operating systems and
               | applications_. The consumer typically does not manage or
               | control most of the underlying hardware but has control
               | over the operating systems, storage, and any deployed
               | applications. The term is inclusive of ''managed''
               | products or services, in which the provider is
               | responsible for some aspects of system configuration or
               | maintenance, and ''unmanaged'' products or services, in
               | which the provider is only responsible for ensuring that
               | the product is available to the consumer. The term is
               | also inclusive of ''virtualized'' products and services,
               | in which the computing resources of a physical machine
               | are split between virtualized computers accessible over
               | the internet (e.g., ''virtual private servers''), and
               | ''dedicated'' products or services in which the total
               | computing resources of a physical machine are provided to
               | a single person (e.g., ''bare-metal'' servers)
               | 
               | (https://www.govinfo.gov/content/pkg/FR-2021-01-25/pdf/20
               | 21-0...)
        
             | chlodwig wrote:
             | IaaS is defined as a provider of computing resources the
             | allows you to run software that is not predefined. So that
             | would seem to include basically every web host. If you can
             | install Wordpress or Mastodon on the servers they provide,
             | they are an IaaS.
        
           | axus wrote:
           | I'm going to need another intelligence to read the full text.
           | 
           | "U.S. IaaS providers and foreign resellers of U.S. IaaS
           | products must exercise reasonable due diligence to ascertain
           | the true identity of any customer or beneficial owner of an
           | Account who claims to be a U.S. person."
           | 
           | So at a minimum, everyone's identity is verified by IaaS
           | provider. If you claim to be a non-U.S. person, additional
           | information is collected.
           | 
           | They mention looking at comments from a previous proposal in
           | 2021, "Taking Additional Steps To Address the National
           | Emergency With Respect to Significant Malicious Cyber-Enabled
           | Activities" https://www.federalregister.gov/documents/2021/09
           | /24/2021-20...
           | 
           | Who counts as IaaS besides Amazon, Azure, and GCS?
        
             | OgsyedIE wrote:
             | Dreamhost, Wordpress, etc
        
               | EGreg wrote:
               | Literally every software that you can host.
               | 
               | This effort will end anonymity on the internet. For
               | everyone.
               | 
               | Crypto was just the beginning. Next is end-to-end
               | encryption. And it's going on worldwide, not just in USA:
               | 
               | https://community.qbix.com/t/the-coming-war-on-end-to-
               | end-en...
        
               | nonameiguess wrote:
               | This is not the industry-standard or NIST definitions of
               | these terms. Something like Google Workspace Suite is
               | Software as a Service. Something like Heroku (or
               | Dreamhost or Wordpress) is Platform as a Service.
               | Something like EC2 and S3 are Intrastructure as a
               | Service. The distinction is renting out undifferentiated
               | server space that a customer installs their own software
               | onto. If you rent a VPS from Linode and install self-
               | hosted Wordpress, that's IaaS. If you buy Wordpress's
               | managed hosting, that's PaaS.
        
               | chlodwig wrote:
               | Well, it may not be the industry standard definition, but
               | it is the definition used in the actual regulation:
               | 
               | -------
               | 
               | Infrastructure as a Service product
               | 
               | or
               | 
               | IaaS product
               | 
               | means a product or service offered to a consumer,
               | including complimentary or "trial" offerings, that
               | provides processing, storage, networks, or other
               | fundamental computing resources, and with which the
               | consumer is able to deploy and run software that is not
               | predefined, including operating systems and applications.
               | The consumer typically does not manage or control most of
               | the underlying hardware but has control over the
               | operating systems, storage, and any deployed
               | applications. The term is inclusive of "managed" products
               | or services, in which the provider is responsible for
               | some aspects of system configuration or maintenance, and
               | "unmanaged" products or services, in which the provider
               | is only responsible for ensuring that the product is
               | available to the consumer. The term is also inclusive of
               | "virtualized" products and services, in which the
               | computing resources of a physical machine are split
               | between virtualized computers accessible over the
               | internet (
               | 
               | e.g.,
               | 
               | "virtual private servers"), and "dedicated" products or
               | services in which the total computing resources of a
               | physical machine are provided to a single person (
               | 
               | e.g.,
               | 
               | "bare-metal servers").
               | 
               | ---
               | 
               | So Dreamhost counts, any web host where you can run
               | arbitrary PHP code would count. Wordpess.com -- where you
               | cannot actually modify the PHP code yourself -- would not
               | count as IaaS. But any web host that allows you to
               | install applications on your own, or run any of your own
               | code, would count as IaaS by this regulation.
        
               | kube-system wrote:
               | Wordpress clearly does not meet the definition of IaaS in
               | the document.
               | 
               | > provides processing, storage, networks, or other
               | fundamental computing resources, and with which the
               | consumer is able to deploy and run software that is not
               | predefined, including operating systems and applications
        
               | dannyobrien wrote:
               | Can you not add plugins to Wordpress?
        
               | kube-system wrote:
               | You cannot install Debian or Windows 11 on Wordpress.
        
               | pavon wrote:
               | It applies to any "software that is not predefined". An
               | OS is just an non-exhaustive example of one type of
               | software that applies.
        
               | kube-system wrote:
               | The next sentence is:
               | 
               | > The consumer [...] has control over the operating
               | systems, storage, and any deployed applications.
               | 
               | That was just a snippet of the full definition here:
               | 
               | https://www.federalregister.gov/d/2024-01580/p-46
        
               | AnthonyMouse wrote:
               | There are two possibilities here.
               | 
               | First, the rule applies to WordPress and all that kind of
               | thing, and then providers would have to KYC WordPress
               | users. Which is a reason not to pass it.
               | 
               | Second, the rule is completely pointless, because it
               | doesn't, and then anyone could create an AI training
               | WordPress plugin that uses whatever arbitrarily fast
               | hardware the server has and thereby easily bypass the
               | rule. Which is a reason not to pass it.
        
               | kube-system wrote:
               | That's silly, no Wordpress hosting has H100 GPUs hooked
               | up to it.
               | 
               | If you skim the full context of this proposal and the
               | topics it focuses on (dedicated servers, virtual servers,
               | AI acceleration), and you've been paying attention to
               | current geopolitics in these areas (top chips being
               | sanctioned), it is completely obvious that goal here is
               | to prevent things like evading sanctions by renting
               | hardware instead of buying it.
        
               | AnthonyMouse wrote:
               | What stops them? You could have a WordPress plugin that
               | uses Stable Diffusion to generate images, or encodes
               | uploaded video, or provides an AI chatbot, and needs fast
               | GPUs because there are a lot of users. Providers will
               | supply anything the customer is willing to pay for. The
               | expected AI plugins would be doing inference rather than
               | training, but the user could use the same hardware for
               | plugins that do something else.
        
               | kube-system wrote:
               | > Providers will supply anything the customer is willing
               | to pay for.
               | 
               | I suppose every company and every service should be in
               | scope for KYC then. /s
               | 
               | But the reality is that Wordpress hosts are not in the
               | business of renting people dedicated servers the price of
               | a nice house. And if they were asked to do so, it
               | wouldn't be a simple automated request without scrutiny.
        
               | AnthonyMouse wrote:
               | In 2010 it wouldn't have been an automated request. Now
               | there is plenty of demand for it to do inference and some
               | providers are likely to start offering it if they don't
               | already. You're also assuming the providers are
               | interested in preventing foreigners from using their
               | systems for AI training, rather than being interested in
               | making as much money as possible without violating the
               | letter of the law.
               | 
               | The latter is one of the reasons rules like this are
               | simultaneously so expensive and ineffective. Provider A
               | decides to KYC everybody because they're big and risk
               | averse, so the rules inconvenience millions of innocent
               | people. Provider B wants to make money selling GPUs to
               | foreigners, so they implicitly choose a structure that
               | allows that to happen if the rules contain any loopholes
               | whatsoever. (This ignoring that foreign customers could
               | just switch to foreign hosts and cost US companies
               | business for no reason.)
               | 
               | And if the premise is the level of resources being
               | consumed rather than the type of service then why don't
               | the rules exempt anyone spending less than e.g.
               | $50,000/month? That would be almost everyone while still
               | _not_ being anyone buying enough compute to do major AI
               | training. It still wouldn 't work but at least it would
               | have much less overhead.
        
               | kube-system wrote:
               | I don't think anyone is under the presumption that these
               | requirements are bulletproof. The point is to just target
               | one big glaring loophole.
               | 
               | > $50,000/month? That would be almost everyone
               | 
               | It might be almost every individual developer. But that
               | isn't really a huge cloud spend at all for an
               | organization.
               | 
               | https://www.cloudzero.com/wp-
               | content/uploads/2023/10/flexera...
               | 
               | But speaking of loopholes, what do you think bad actors
               | would do if you told them that they weren't subject to
               | KYC under a certain dollar amount? lol
        
               | AnthonyMouse wrote:
               | > It might be almost every individual developer. But that
               | isn't really a huge cloud spend at all for an
               | organization.
               | 
               | That's kind of the point. It excludes all of the
               | individuals and small businesses and makes it unambiguous
               | that it doesn't apply to someone paying $10/month for a
               | VPS to use as a VPN endpoint for privacy.
               | 
               | > But speaking of loopholes, what do you think bad actors
               | would do if you told them that they weren't subject to
               | KYC under a certain dollar amount?
               | 
               | In some hypothetical world where the rules were actually
               | effective? Spend $49,000 and then create a new account,
               | which would be highly suspicious and still cause them to
               | get caught.
               | 
               | In practice? Use a cooperative provider (Wells Fargo as a
               | hosting company), or one in another country, the same as
               | they would do regardless.
        
               | axus wrote:
               | The whole SUV category of vehicles was spawned as a
               | workaround for the 1975 Energy Policy and Conservation
               | Act of 1975. Demand blocked by laws leads to weird
               | mutations.
               | 
               | I'm thinking that this will simply promote cloud
               | providers that operate outside America, sort of like
               | Binance and FTX were "forced to exit" the US market. Not
               | a bad result.
        
               | sokoloff wrote:
               | I think it's most reasonable to read that as "includes
               | [all of these examples]" not "excludes if it can't [any
               | of these examples]"
               | 
               | AWS Lambda would clearly (IMO) be in-scope as IaaS by
               | this definition, as an example, even though I can't
               | install another OS.
        
               | kube-system wrote:
               | AWS Lambda qualifies because it is part of AWS and an AWS
               | account gives you access to EC2 which _definitely_
               | qualifies.
        
               | Izkata wrote:
               | "and applications", not just operating systems.
        
               | mysteria wrote:
               | Services like Github Actions, Google Collab, and web-
               | based IDEs likely meet this definition though as it lets
               | users execute their own custom code on their cloud. So
               | basically all developer stuff may require an ID check.
        
               | kube-system wrote:
               | That was just part of the definition that I quoted.
               | 
               | In the full context, it is quite clear it is targeting
               | things like EC2, dedicated hosting, etc.
               | 
               | https://www.federalregister.gov/d/2024-01580/p-46
               | 
               | I don't think it's reasonable to read this as if MS Excel
               | qualifies as an IaaS.
        
               | whywhywhywhy wrote:
               | Does Scratch count?
        
             | unethical_ban wrote:
             | edit: Vultr info is wrong. They don't have anonymous use
             | anymore.
             | 
             | Vultr, for example.
             | 
             | There are high-quality IaaS providers that accept bitcoin
             | for payment, allowing someone to host a server on their
             | platform without revealing their identity.
        
               | rattlesnakedave wrote:
               | Vultur requires a card linked for ID verification even if
               | paying for BTC. Or at least they did in the past when I
               | tried.
        
               | unethical_ban wrote:
               | Interesting. I can't even create an account with a
               | privacy address (passmail.net forwarding). Wankers.
               | 
               | You are correct. "Account must be funded by credit card
               | or PayPal before making a Bitcoin deposit." No more
               | anonymity on Vultr.
        
         | justaman wrote:
         | I think everyone has a sour taste left over from decades of
         | half-baked laws written by politicians that don't understand
         | the basics of the internet or technology in general.
         | 
         | With that said, I also don't understand the issues people are
         | having with this.
        
           | newaccount7hhhf wrote:
           | What laws are you talking about? The Internet has grown a lot
           | that's largely because we have smart politicians and strong
           | institutions. I really think the regulation of the Internet
           | has been amazingly good.
        
             | Kye wrote:
             | For example: CAN-SPAM. If I want to send emails to a list,
             | I have to burn $90 of my scarce dollars every year just for
             | a PO box for the address at the bottom on the off chance
             | someone sends a letter to unsubscribe. Unless I want to put
             | my home address in every email, which I don't, and no one
             | should. Unsubscribe links and highly effective spam filters
             | were already completely standard when the law was passed in
             | 2003. It doesn't matter if the email you send doesn't
             | actually require it because every mailing list provider
             | requires it.
        
               | loeg wrote:
               | Eh, unsubscribe links were definitely not universal in
               | 2003 and they barely are today. But the situation has
               | definitely improved in the last 20 years.
        
               | AnthonyMouse wrote:
               | The point is the rules are daft. A sensible rule would
               | require a functioning unsubscribe process in the email,
               | which every piece of software would then automate as an
               | unsubscribe link. The actual rule requires people to be
               | able to unsubscribe via a _postal mailing address_ ,
               | which is unreasonable and ridiculous.
        
               | loeg wrote:
               | I'm just saying, your earlier comment would have been
               | better without the sentence: "Unsubscribe links and
               | highly effective spam filters were already completely
               | standard when the law was passed in 2003."
        
             | jovial_cavalier wrote:
             | https://en.wikipedia.org/wiki/Stop_Online_Piracy_Act
             | 
             | https://en.wikipedia.org/wiki/PROTECT_IP_Act
             | 
             | https://en.wikipedia.org/wiki/Anti-
             | Counterfeiting_Trade_Agre...
             | 
             | https://en.wikipedia.org/wiki/Digital_Millennium_Copyright_
             | A...
             | 
             | https://en.wikipedia.org/wiki/Patriot_Act
             | 
             | https://en.wikipedia.org/wiki/PRISM
        
           | logifail wrote:
           | > With that said, I also don't understand the issues people
           | are having with this.
           | 
           | The regulation "requir[es] U.S. Infrastructure as a Service
           | (IaaS) providers of IaaS products to verify the identity of
           | their foreign customers"
           | 
           | Q: How would one propose to determine if a customer is
           | foreign or not?
           | 
           | A checkbox, perhaps? <rolls eyes>
           | 
           | No bad actor would possibly pretend to be a domestic
           | customer, of course... <rolls eyes again>
        
             | refulgentis wrote:
             | That's a strawman. <rolls eyes> It won't be a checkbox, of
             | course... <rolls eyes again>
        
               | logifail wrote:
               | > That's a strawman [..]
               | 
               | OK, I'll bite. How exactly are [US] domestic users of
               | services supposed to prove they don't need to prove their
               | identity?
               | 
               | EDIT: it reminds me of the Common Travel Area (between
               | Ireland and of the United Kingdom of Great Britain and
               | Northern Ireland), which has some glorious
               | inconsistencies. For instance that nationals of Ireland
               | and the UK travelling between those two countries do not
               | need a passport, except when you take an international
               | flight and rock up at IE/UK border control it's fairly
               | hard to prove you are a national who doesn't need to
               | provide a passport without having ... a passport (or
               | equivalent ID).
        
               | refulgentis wrote:
               | KYC stands for Know Your Customer, and is a core
               | regulation in banking. So we can pivot off that and work
               | through what a bank does to verify your identity.
               | 
               | I signed up for a Mercury bank account a few months back
               | for my Delaware corporation without talking to anyone, so
               | I'll use that as a template.
               | 
               | I can't remember the exact steps, but tl;dr submit a
               | passport photo / driver's license photo and a photo I
               | take in the app itself. If it was a not-US passport, then
               | they'd dig into a full verification, not just a quick
               | manual check of "is that face the same as the
               | passport/license, is the passport/license ID # valid, and
               | are the photos edited"
        
               | AnthonyMouse wrote:
               | You seem to be conceding the point that they would be
               | forced to invade the privacy of their US customers in
               | addition to just foreign ones.
        
               | refulgentis wrote:
               | True, I guess I wouldn't call it invading privacy, that's
               | sounds a bit overwrought to me. Then banks invade my
               | privacy, the DMV invades my privacy, etc. There's always
               | tradeoffs, I respect people's concern about them, and I
               | wish there was a gentler to say it.
        
               | AnthonyMouse wrote:
               | > Then banks invade my privacy, the DMV invades my
               | privacy, etc.
               | 
               | That is a reasonable and factually accurate statement.
               | 
               | > There's always tradeoffs, I respect people's concern
               | about them, and I wish there was a gentler to say it.
               | 
               | The tradeoff here is astonishingly bad. Studies have
               | shown that AML/KYC have an effectiveness of less than a
               | fraction of one percent. They continue to proliferate
               | because their largest costs fall on the _users_ rather
               | than the _companies_ , so they're the thing that large
               | corporations suggest as a "solution" when they're being
               | pressured to do something. Because people have the
               | perception that it will do some good, even though that
               | perception is inaccurate.
               | 
               | In reality what they do is provide a means to satisfy
               | "something must be done" in a way that dumps the costs on
               | marginalized users instead of politicians and
               | corporations.
        
               | outop wrote:
               | Have you travelled between the UK and Ireland? You most
               | definitely do not need a passport and do not need
               | "equivalent ID". You can travel (by boat) with a student
               | card, driving license, photographic travel pass (ie
               | over-60s pass, young person rail pass), or photographic
               | id from your work.
               | 
               | The check is very much "don't stop walking but hold your
               | ID-looking thing in your hand so a nonchalant man can
               | glance at it". You would attract very little attention
               | with someone else's UK or Irish driving license, a bit
               | more if you decided to test the waters with a weird form
               | of ID.
               | 
               | Children can travel with a birth certificate (no photo).
               | 
               | You need more than this _to get on an aeroplane_ , but
               | that also applies to domestic flights in the UK.
               | 
               | If you get the boat and show eg. a Romanian student card,
               | they might ask you where your passport is, somewhat
               | reasonably since you would have needed it to travel to
               | the UK or to Ireland. They would accept an ID card
               | probably and might let you in with legit looking non-
               | government ID.
               | 
               | That's the sea border. You can cross the land border
               | between the Republic of Ireland and Northern Ireland
               | without any form of ID at all, government-issued,
               | photographic or otherwise. Lots of people do it every day
               | by car or bus and it would not remotely occur to them to
               | take ID with them.
               | 
               | So the Romanian student would have no problem travelling
               | between London and Dublin without showing anything since
               | they could get a boat Glasgow- Belfast and then get a bus
               | to Dublin.
               | 
               | If this was your best example of governments lying and
               | changing the rules, it's not a very good one (and is also
               | kind of offensive to Irish and British people).
        
               | logifail wrote:
               | > You need more than this to get on an aeroplane, but
               | that also applies to domestic flights in the UK.
               | 
               | Can you clarify what you mean by "more than this"?
               | 
               | I've travelled on many domestic flights within the UK,
               | and ID is not routinely checked.
               | 
               | > If this was your best example of governments lying and
               | changing the rules
               | 
               | Ouch.
               | 
               | The common travel area has its origins way back in 1923,
               | the rules are clear, no-one is lying.
               | 
               | It's just that it's hard to prove you are entitled to its
               | benefits without having an ID document with you that - if
               | you're entitled - it says you don't have to have with
               | you...
        
               | outop wrote:
               | When did you last travel on a UK domestic flight? You
               | definitely need government issued ID.
               | 
               | You are suggesting that having to show _any photographic
               | ID_ is the same as having to show _a passport_. That 's
               | obviously silly.
               | 
               | No one has to prove that "they are entitled to not show a
               | passport" by showing British or Irish ID. This is a
               | fantasy.
               | 
               | On the boat everyone, British, Irish or other, has to
               | show ID of some kind. No one has to show a passport. At
               | the land border no one has to show anything.
        
           | ranger_danger wrote:
           | I wonder how they deal with the (hopefully) constant abuse
           | reports aimed at them from providers who are tired of their
           | shady customers doing shady things from their IPs.
        
         | f38zf5vdt wrote:
         | From the executive order (Executive Order 14110) it seems to
         | affect only massive compute infrastructure:
         | 
         | > (i) any model that was trained using a quantity of computing
         | power greater than 10^26 integer or floating-point operations,
         | or using primarily biological sequence data and using a
         | quantity of computing power greater than 10^23 integer or
         | floating-point operations; and
         | 
         | > (ii) any computing cluster that has a set of machines
         | physically co-located in a single datacenter, transitively
         | connected by data center networking of over 100 Gbit/s, and
         | having a theoretical maximum computing capacity of 10^20
         | integer or floating-point operations per second for training
         | AI.
         | 
         | Keep in mind that most consumer graphics cards are in the
         | _teraflops_ range, which is 10^12. It's hard to imagine this
         | affecting the average person, it seems that they are specifying
         | KYC for people using clusters with thousands or tens of
         | thousands of cards.
        
           | Dylan16807 wrote:
           | > Keep in mind that most consumer graphics cards are in the
           | _teraflops_ range, which is 10^12.
           | 
           | Something like 40 of them, or 100-300 if you're looking at
           | FP16. So well over 2^14.
           | 
           | And that's per second, give it your idle cycles for four
           | months and that's 10^7 seconds.
           | 
           | It gets pretty close to 10^23.
        
           | pavon wrote:
           | No, that is just one part of it. The proposed rules are
           | intended to cover both EO13984, which addresses foreign
           | entities using US IaaS for Cyber attacks, and EO14110 which
           | addresses foreign entities using AI hardware.
           | 
           | They require _all_ IaaS[1] to determine if customers are US
           | persons, and if not to collect and retain certain identifying
           | information[2], and provide annual reports describing their
           | processes[3]. It grants the Secretary of Commerce extra-
           | judicial power to force any IaaS to stop doing business with
           | any foreign customer, or place restrictions on their use[4].
           | This section lists things that the Secretary should consider
           | in doing so, but doesn 't have any hard requirements.
           | Finally, it requires the IaaS to report certain foreign use
           | of AI[5].
           | 
           | [1]SS7.301 https://www.federalregister.gov/d/2024-01580/p-189
           | 
           | [2]SS7.302 https://www.federalregister.gov/d/2024-01580/p-219
           | 
           | [3]SS7.304 https://www.federalregister.gov/d/2024-01580/p-266
           | 
           | [4]SS7.307 https://www.federalregister.gov/d/2024-01580/p-377
           | 
           | [5]SS7.308 https://www.federalregister.gov/d/2024-01580/p-403
        
             | jiggawatts wrote:
             | > It grants the Secretary of Commerce extra-judicial power
             | to force any IaaS to stop doing business with any foreign
             | customer
             | 
             | This can backfire, as foreign customers of public clouds
             | may switch to local providers, which erodes the US near-
             | monopoly on cloud services. Ironically this can reduce the
             | visibility and control the US government has over foreign
             | nation states.
             | 
             | E.g.: most of the Australian government is hosted in either
             | Azure or AWS. That kind of thing might stop if
             | _extrajudicial_ power is granted to pull the plug on any
             | customer on any time.
        
         | chlodwig wrote:
         | Skimming the regulations, this does not seem right. All IAAS
         | providers (which is everyone who allows customers to run custom
         | code, so it includes any web host like Dreamhost) to verify the
         | identity of foreigners who open an account. This would
         | seemingly entail the service provider needing to verify
         | everyone's identity, in order to figure out who is a foreigner
         | and who is not.
         | 
         | In other words, if you want to run your own Wordpress, or
         | Mastodon node, or your own custom CMS web site or group chat or
         | IRC or bitcoin node, you would need to reveal your identity to
         | the hosting service that you want. This does seem quite bad and
         | could obviously be used to identify political dissidents.
         | 
         | On top of that, the IAAS must report to the US Commerce
         | department about foreigners who are using services to train
         | large AI models.
        
           | Raidion wrote:
           | Aren't you basically revealing yourself anyway because you
           | need to pay them?
        
             | chlodwig wrote:
             | There are IaaS services out there that accept bitcoin,
             | monero, or anonymous prepaid charge cards. They aren't an
             | IaaS but Mullvad even accepts cash mailed to them in an
             | envelope.
        
               | _tk_ wrote:
               | Is it fair to assume, that one can engage in a business
               | relationship with these services outside the US? I'm not
               | sure I see the effect that you are implying. AWS, GCP,
               | Azure don't accept crypto. Mullvad is as you point out
               | not an IaaS provider.
        
               | chlodwig wrote:
               | Namecheap, Vultr, BuyVm all operate in the U.S. and at
               | times in the past (I don't know if they still do) have
               | either accepted crypto or anonymous charge cards
               | (available for cash at a convenience store), thus making
               | it possible to get a dedicated server or VM totally
               | anonymously. This new regulation would seem to prevent
               | this.
        
               | _tk_ wrote:
               | Interesting, I did not know this. The actual anonymity of
               | crypto currencies aside, it's good to see these kind of
               | businesses do still exist.
        
             | dsign wrote:
             | AWS has my name and my credit card number. But they have
             | never asked for a photocopy of my passport, my history of
             | international travel, which nationalities I have and so on.
             | Something tells me that for the goal of this law to be
             | achieved, all those details would need to enter the
             | database.
        
               | dingnuts wrote:
               | Amazon is certainly supposed to ensure that you are not a
               | sanctioned person or a citizen of a sanctioned country.
               | This was a concern decades ago when I was in shared web
               | hosting.. don't know why it would have changed?
        
               | bcrl wrote:
               | When has big tech had a good history of proactive
               | compliance?
        
               | bostonpete wrote:
               | AWS has a denied party screening team and absolutely
               | restricts access to services based on the BIS entity list
               | and other sanctioned parties.
        
               | brookst wrote:
               | I've been in big tech for a while and oh wow is there a
               | lot of proactive compliance.
        
               | kensey wrote:
               | Not necessarily (although that doesn't necessarily mean I
               | think this is OK). Payment-card-based verification is a
               | longstanding method of doing prima-facie verification
               | like this. When you give your credit card, you give your
               | billing address and typically your phone number -- if the
               | postal code is a US address and the phone number is a US
               | area code and everything else is consistent with that,
               | that might be all the KYC required. If you appear to be a
               | foreign national operating outside the US, they can flag
               | that and require additional paperwork only then.
               | 
               | This proposed rule looks to me like it basically requires
               | providers to come up with their _own_ verification plans,
               | which may then differ from provider to provider, so as to
               | be  "flexible and minimally burdensome to their business
               | operations".
               | 
               | [note for the following: I am not a lawyer. The following
               | is not legal advice. Do not fold, spindle or multilate.
               | Do not taunt Happy Fun Ball.]
               | 
               | The real danger, I think, with things like this is,
               | there's an executive order that was issued, but it
               | further specified a rulemaking process be conducted to
               | determine the actual regulations that define compliance.
               | The link in the title is to the proposed rule. There's
               | nothing that says any amount of prior public input will
               | necessarily influence the details of the final rule, or
               | that rule can't change in the future through another
               | rulemaking process, and if it does the only way to
               | challenge it is either to sue the agency on the grounds
               | that it exceeded its discretion (e.g. by making rules
               | that require unconstitutional things) or that the
               | enabling executive order is itself unconstitutional --
               | but these kinds of federal cases have a pretty high bar
               | for what's called "standing" (the legal grounds to bring
               | a particular lawsuit): you pretty much have to suffer
               | concrete harm or be in obvious and imminent danger of
               | suffering it to a grievous degree. (This is one reason
               | you hear about "test cases" -- often somebody will agree
               | to be the goat who is denied something, fined, or even
               | arrested and convicted of a crime, so that standing to
               | sue to overturn the law can be established.) Other times,
               | if a lot of potential defendants already have standing, a
               | particularly sympathetic defendant will be selected for
               | the actual challenge. The US federal courts are also
               | deferential to "agency discretion" by default, as a
               | matter of doctrine.
               | 
               | What happens all too often with these things is, the
               | initial rulemaking is pretty reasonable, and the public
               | outrage (if there was any) dissipates. Then three years
               | (or however long) on, the _next_ rulemaking imposes
               | onerous restrictions and strict criteria, and people
               | suddenly (relatively speaking) wake up and find they 're
               | now in violation of federal regulations that they were in
               | compliance with last week. (This is one reason public-
               | interest groups are so critical -- they have the
               | motivation and sustained attention to comb the Federal
               | Register for announcements about upcoming rounds of
               | rulemaking on various topics.)
        
               | jofla_net wrote:
               | Thanks, this was useful clarification.
        
               | wkat4242 wrote:
               | If you rent a VPS in supposedly privacy-conscious Germany
               | they need photo id too :(
               | 
               | Luckily there's other cheap options in Europe like in
               | France.
        
               | Stagnant wrote:
               | I don't think that is a legal requirement in Germany. At
               | least Hetzner lets you rent a German VPS or dedicated
               | server without ID. Though Hetzner may require you to
               | submit an ID if you are flagged by their automated
               | systems upon registration.
        
               | wkat4242 wrote:
               | It was actually Hetzner that didn't want to provision my
               | VPS without Photo ID. I blanked out the SSN as our
               | government tells us to do and they balked at that as
               | well. After I showed them my government's website
               | explaining how and why to do that they were OK with it
               | but at that point the relationship was already soured and
               | I started looking for alternatives.
               | 
               | Maybe they changed it now but they were asses about it
               | then. I thought it was a legal requirement, they
               | basically said as much though I don't recall the exact
               | details, it was before the pandemic.
               | 
               | Eventually I just moved to Scaleway in France which is
               | much nicer and cheaper and you can even talk to their
               | support on slack.
               | 
               | PS: I don't do anything nefarious on my servers but I
               | just don't want my ID on file anywhere it's not needed.
        
             | AnthonyMouse wrote:
             | Some hosts accept alternate payment systems, like gift
             | cards or cryptocurrency. You can also have someone else pay
             | for it with a credit card or bank transfer without giving
             | _your_ name, which can be quite important in some cases.
             | The new rules would presumably make that a crime.
        
               | jiggawatts wrote:
               | "Say you host spammers and scammers without saying you
               | host them."
        
           | behringer wrote:
           | Tbh this is fine by me. It's about time the US stop being the
           | center of the world for internet infrastructure.
        
             | karmajunkie wrote:
             | i'm reading through the contrarian takes here and thinking,
             | "yeah i'm kind of ok with that?"
             | 
             | this would make it much trickier for bad actors to get away
             | with everything from online ai scams to swatting. i could
             | live with that.
        
           | Spooky23 wrote:
           | Good. It's not 1999.
           | 
           | There are so many malicious actors putting human life at risk
           | in some scenarios it should be possible to figure out who
           | owns what.
           | 
           | Now, I would start with corporate ownership and focus on
           | anonymous entities controlling things like Delaware and
           | Nevada corporations. But that's me.
        
         | RAM-bunctious wrote:
         | It's really not benign as far as I can see. There is an
         | implication that its purpose is to allow providers to start
         | writing reports on foreign users training LLMs (which,
         | incidentally, I'm not condoning either), but in the process it
         | requires every American IaaS has to start implementing KYC
         | folly.
         | 
         | No one wants to send in selfies and their passport just to
         | start a Digital Ocean droplet.
        
           | BenjiWiebe wrote:
           | I'm curious if the spammers will find a way around this. I
           | would actually like to be ID'd by a provider if that also
           | meant they had no un-ID'd customers. I'd expect their IP
           | range would start to get a pretty good reputation.
        
             | AnthonyMouse wrote:
             | The spammers are criminals. They'll just use ID scans and
             | info from data breaches of other companies. Requiring more
             | companies to collect them makes it even worse because now
             | there are more places to exfiltrate them and it makes it
             | easier for criminals to commit identity theft against
             | financial institutions etc.
             | 
             | There are also non-"criminals" who are more than willing to
             | use their actual ID for the sort of things that aren't
             | strictly illegal but will still get your IP space on a
             | bunch of block lists when they can make a buck doing it, so
             | it wouldn't solve the problem even if it could actually
             | identify all of the customers.
        
         | NoMoreNicksLeft wrote:
         | > It seems a bit benign
         | 
         | This seems, to me, an utterly malignant attack on anonymity,
         | which is a protected constitutional right. It's the idea that
         | every internet packet needs to be tied back to some verified
         | identity. We're in frog-boiling territory with this garbage.
        
           | spiralpolitik wrote:
           | There is no absolute right to anonymity in the US
           | constitution.
           | 
           | (The courts have "recognized relatively strong First
           | Amendment presumptions on behalf of purveyors of anonymous
           | speech, especially for those that are statements of opinions
           | rather than obvious falsehoods, while recognizing that
           | government sometimes has the right to identify such speakers
           | when they have used their platforms to harass, engage in
           | slander or sexual predation, make true threats, or allow
           | foreign governments to influence U.S. elections")
        
             | AnthonyMouse wrote:
             | How is one supposed to exercise their right to anonymously
             | express political opinions if anonymity is prohibited by
             | law?
        
               | krapp wrote:
               | There is no right to anonymously express political
               | opinions.
               | 
               | There is a right to express political opinions, but
               | anonymity is a privilege, not a right.
        
               | AnthonyMouse wrote:
               | Then how do you explain these?
               | 
               | https://cs.stanford.edu/people/eroberts/cs181/projects/an
               | ony...
        
               | krapp wrote:
               | I see controversy and a lot of dissent among Justices,
               | but no decisions that explicitly declare a Constitutional
               | right to anonymity.
               | 
               | And the modern Court explicitly declared that a
               | Constitutional right to _privacy_ does not exist, and one
               | cannot have anonymity without privacy, so no.
        
               | AnthonyMouse wrote:
               | > I see controversy and a lot of dissent among Justices,
               | 
               | Precedent is set by the majority, not the dissent.
               | 
               | > but no decisions that explicitly declare a
               | Constitutional right to anonymity.
               | 
               | Weird then that there are several decisions striking down
               | laws that violate the right to anonymous speech?
               | 
               | > And the modern Court explicitly declared that a
               | Constitutional right to _privacy_ does not exist, and one
               | cannot have anonymity without privacy
               | 
               | One cannot refuse to turn over one's papers and effects
               | in the absence of probable cause without privacy either.
               | 
               | Consider the possibility that there could be a right to
               | anonymous speech without a right to anonymous practice of
               | medicine. A universal right to privacy would require
               | both. Just because it isn't both doesn't mean it's
               | neither.
        
               | krapp wrote:
               | >One cannot refuse to turn over one's papers and effects
               | in the absence of probable cause without privacy either.
               | 
               | Yes. I believe a right to privacy once existed, but it
               | was nullified as it formed the basis of the case for Roe
               | V. Wade. As a result even the Fourth Amendment is
               | weakened because it must be interpreted in the light of a
               | right to privacy no longer existing.
               | 
               | What I'm trying to put forth is that the assumptions
               | you're working under are no longer valid and we've thrown
               | the baby out with the bathwater.
        
               | AnthonyMouse wrote:
               | > I believe a right to privacy once existed, but it was
               | nullified as it formed the basis of the case for Roe V.
               | Wade.
               | 
               | It was kind of the other way around. There is clearly no
               | explicit right to abortion in the constitution, so to
               | find one it would have to be implicit, but the Court in
               | _Roe_ wanted to find one, so they made one up. The
               | reasoning was something like, the constitution implies
               | there is a general right to privacy and laws against
               | abortion violate it. The people who liked the result were
               | then stuck trying to defend its inconsistent reasoning
               | for 50 years, because the same logic would cause all
               | kinds of other laws to be a violation of the same right.
               | Obvious example would be drug prohibition; government
               | invading your privacy by trying to control what you put
               | into your own body. Same logic as _Roe_.
               | 
               | But _Roe_ was never actually extended to any of that
               | stuff, so overturning it didn 't re-enable drug
               | prohibition after it was struck down, since it was
               | (inconsistently) never struck down to begin with.
               | 
               | The cases having to do with anonymous speech are
               | independent and use entirely different logic. The general
               | idea is that people are deterred from speaking (chilling
               | effects) if people can associate what they have to say
               | with a physical person who can then be harassed for
               | expressing an unpopular opinion. It doesn't have any of
               | the same problems because there is no First Amendment
               | right to morphine, which they could ban outright under
               | the same justification as they ban heroin, so having to
               | show your ID to get morphine isn't deterring you from
               | exercising your right to free speech.
        
               | NoMoreNicksLeft wrote:
               | The converse would have to be true then, that the
               | government has the legitimate power to intimidate people
               | to not express their opinion. This does not seem like a
               | legitimate power for government to have, but now I need
               | to be careful whether I express it at all.
        
               | krapp wrote:
               | Laws against slander, libel, intimidation, conspiracy,
               | perjury, etc are based upon the government's power to
               | intimidate people from expressing opinions. It is a
               | felony in the US to express the opinion that the
               | President should be killed. Speech in the US has never
               | been a free for all.
        
               | AnthonyMouse wrote:
               | Those are not opinions, they're provably false statements
               | or threats. Conspiracy is essentially committing a crime
               | as a group rather than an individual, and the statements
               | are the evidence of the crime rather than the crime in
               | itself.
               | 
               | The closest the government comes to prohibiting an
               | _opinion_ is copyright, but even then you can restate the
               | opinion in your own words, and when an exact quote is
               | necessary to make your point it 's fair use specifically
               | because it would otherwise violate free speech.
        
           | monksy wrote:
           | > . It's the idea that every internet packet needs to be tied
           | back to some verified identity
           | 
           | There's been multiple attempts to do this. Via KOSA and a few
           | others lately in our Congress. PR friendly candidates like
           | Duckworth have been trying to walk this through the system.
        
         | chrisjj wrote:
         | > seems like the extent of this is to require IAAS
         | (Infrastructure) providers to verify the identity of those who
         | are using their services to train AI.
         | 
         | Only foriegners.
         | 
         | > It's an attempt to stymie sanctioned or malicious actors,
         | from training AI and especially from hopping between services
         | or using aliases to continue training on their model.
         | 
         | Unlikely, since it exempts non-foriegn malicious actors
        
         | codedokode wrote:
         | This won't work. Foreign nations have enough skill and
         | resources to pass KYC as a citizen (steal someone's documents,
         | pay a homeless for verification etc). And as I understand, US
         | doesn't have a central citizen database so it is difficult to
         | verify a document.
        
           | White_Wolf wrote:
           | It's funny they don't need ID to vote but they'll need one
           | for a VPS.
           | 
           | EDIT: I know it's about IaSS.
        
           | AnthonyMouse wrote:
           | That isn't even the first reason it won't work.
           | 
           | Computing is a global commodity. There are providers in other
           | countries. They would just use one of those.
        
           | atentaten wrote:
           | It's not meant to work.
        
         | toss1 wrote:
         | On top of that, it is to identify _FOREIGN_ users
         | 
         | >>"require U.S. IaaS providers to verify the identity of
         | foreign users of U.S. IaaS products, ... which calls for the
         | Department to require U.S. IaaS providers to ensure that their
         | foreign resellers verify the identity of foreign users. E.O.
         | 14110 also provides the Department with authority to require
         | U.S. IaaS providers submit a report to the Department whenever
         | a foreign person transacts with them to train a large AI model
         | with potential capabilities that could be used in malicious
         | cyber-enabled activity."
         | 
         | We damn well _SHOULD_ be identifying foreign users of our
         | services, particularly those which have high-powered potential
         | to cause harm.
         | 
         | This knee-jerk [govt identifying anybody is bad] response
         | prevalent here deeply undermines the cause of actually
         | maintaining privacy. There are actually very bad actors out
         | there, and if we fail to identify and contain them, things will
         | be far worse. The reality is that some measures must be taken
         | -- let's focus on containing the real threats, not cry foul at
         | every shadow of a hint that we might approach a slippery slope.
        
         | olalonde wrote:
         | > Is it that it's a slippery slope or perhaps I'm being naive
         | in regards to the scope?
         | 
         | This. Also, it won't stop malicious actors. Setting up a LLC to
         | mask your true identity is cheap and easy. Not to mention that
         | providing a fake identity or pretending your are not a "foreign
         | person" is also cheap and easy.
        
       | Izkata wrote:
       | For those of us who don't know what this is, an explanation is a
       | bit down the page:
       | 
       | > To address these threats, the President issued E.O. 13984,
       | "Taking Additional Steps To Address the National Emergency With
       | Respect to Significant Malicious Cyber-Enabled Activities," which
       | provides the Department with authority to require U.S. IaaS
       | providers to verify the identity of foreign users of U.S. IaaS
       | products, to issue standards and procedures that the Department
       | may use to make a finding to exempt IaaS providers from such a
       | requirement, to impose recordkeeping obligations with respect to
       | foreign users of U.S. IaaS products, and to limit certain foreign
       | actors' access to U.S. IaaS products in appropriate
       | circumstances. The President subsequently issued E.O. 14110,
       | "Safe, Secure, and Trustworthy Development and Use of Artificial
       | Intelligence," which calls for the Department to require U.S.
       | IaaS providers to ensure that their foreign resellers verify the
       | identity of foreign users. E.O. 14110 also provides the
       | Department with authority to require U.S. IaaS providers submit a
       | report to the Department whenever a foreign person transacts with
       | them to train a large AI model with potential capabilities that
       | could be used in malicious cyber-enabled activity.
        
       | blackeyeblitzar wrote:
       | What can we do to actually contest it? I see this website lets
       | you submit a "formal comment". But is that enough? Who is in
       | charge of the decision and who else can be pressured to stop it
       | (certain legislators)?
        
       | martingalex2 wrote:
       | This is a good overview
       | https://www.akingump.com/en/insights/alerts/commerce-issues-...
        
       | perihelions wrote:
       | - _" To Address the National Emergency"_
       | 
       | A fast-moving emergency that can't be fixed by normal
       | constitutional lawmaking processes, and must resort,
       | exceptionally, to executive-branch emergency decrees--for
       | expedience. Nevermind the executive order it's drawing authority
       | from was written three years ago. It was a fast-moving emergency
       | then, too, I suppose.
       | 
       | https://www.federalregister.gov/documents/2021/01/25/2021-01... (
       | _" Taking Additional Steps To Address the National Emergency_
       | [sic] _With Respect to Significant Malicious Cyber-Enabled
       | Activities "_ (2021))
        
         | greyface- wrote:
         | Fun fact: we've got active national emergencies dating back to
         | 1979!
         | https://en.wikipedia.org/wiki/List_of_national_emergencies_i...
        
           | highcountess wrote:
           | Geez ... those are some long emerging occurrences.
        
           | rtkwe wrote:
           | They're mostly sanctions regimes though it looks like which
           | the Executive can largely implement on it's own (under
           | current constitutional interpretations). It probably included
           | other things that have since been ended and the sanctions are
           | the only thing really left.
        
         | sschueller wrote:
         | So national security trumps democracy and freedom? What do you
         | have left to protect when you give it all up? Might as well
         | just elect a king and be done with it.
        
           | ryandrake wrote:
           | Don't worry--we seem to be actively working on this one, too.
        
           | unboxingelf wrote:
           | Why elect a king when you already have a private group of
           | bankers running the show
        
             | robocat wrote:
             | Systems run the show, not people.
             | 
             | "What important truth do very few people agree with you
             | on?": I believe that nobody is running the show. The
             | systems we have created are more complex than we
             | understand. I think a few people individually understand a
             | few aspects of the different systems (we are not at the
             | complete mercy to these systems).
             | 
             | I also believe that we have a psycological need to know our
             | social heirachies therefore we create stories about who we
             | think is in control. That need creates conspiracy theories!
             | That need creates narratives that certain people are
             | running the world (but when you look closy at those people
             | they are not running things - they don't understand how
             | everything works even though they put much effort into
             | trying to).
        
               | greenavocado wrote:
               | Banking is the foundation of all so-called systems. Take
               | away the financing and nothing gets done.
        
               | plasticchris wrote:
               | A point very eloquently made by Rick and Morty
        
               | robocat wrote:
               | People's desires are the foundation of all so-called
               | systems. Take away the people and nothing gets done.
               | 
               | Or were atoms the foundation? Or thinking? Or maths? Or
               | law? Or take away black holes and nothing gets done?
               | 
               | Ranking interdependent systems is nonsense. Reductionism
               | and false arguments don't help much either.
        
               | greenavocado wrote:
               | You can make people do just about anything for money.
               | Nothing else even comes close except ideology in a
               | distant second place.
        
               | robocat wrote:
               | Are you trying to argue that money is more important than
               | banking? But that banking was the most important thing?
               | Your logic elludes me.
               | 
               | Or maybe you have a manipulative world view? What is more
               | important - money or power? If you have power do you need
               | money? Is power equivalent to money?
               | 
               | "Money" is a means of exchange, and in some contexts it
               | is a status signal.
               | 
               | Money is a measure, not an ends in itself. People want
               | the money to do something with: the something is faaaar
               | more important than money. Find me a person with money,
               | and I will easily find ten things they would prefer.
               | 
               | Anecdotally:
               | 
               | My friends don't value money above other things. Other
               | friends could easily take nearly all my money if they
               | chose to (I put myself into very submissive situations).
               | I don't work because I don't need more money.
               | 
               | Perhaps I live in a different world than you.
               | 
               | The people I know all have complex desires, and few of my
               | friends are concentrating on making money (and the
               | smartest friends I know don't make money their central
               | goal). I do have a couple of friends who try to make
               | money and they seem to do it quite well without too much
               | difficulty.
               | 
               | Have you tried to offer money to people? If it is so
               | critical then people would take it. My experience is that
               | a few do but many don't. I've offered large amounts to
               | acquaintances that haven't taken it (perhaps with or
               | without hooks).
               | 
               | (Slight edits for clarity).
        
               | greenavocado wrote:
               | Yes, I pay people do to work on difficult and annoying
               | computer systems. Nobody would want to do this job for
               | free.
        
               | MaxfordAndSons wrote:
               | I agree with this. I this misunderstanding is the root
               | cause of, well a lot of shit, but particularly the
               | increase in belief in conspiracy theories by members of
               | the public. Most people lack a conceptual understanding
               | of emergent behavior in complex systems, and instead rely
               | on linear narrativization to understand the world (which
               | by the way is not an insult to the public's intelligence,
               | it's just the way our brains work unless you make a
               | concerted effort to step outside of that default). And if
               | you aren't considering multivariate, emergent behavior as
               | a possible explanation for unpredictable and inscrutable
               | world events, the next and really only reasonable
               | explanation is intricate conspiracies by powerful agents.
        
               | packetlost wrote:
               | I mean, a monarchy is also a system, but I also recognize
               | that's not what you're talking about.
               | 
               | I'm inclined to agree, though I do think there's a
               | disproportionate amount of influence in some groups. I
               | also worry that the true danger of an artificial super-
               | intelligence is not in a SkyNet-like scenario, but a more
               | subtle and slower influence over global societies via
               | trade and economics. It already more or less runs the
               | world in abstract, so a _thing_ that can understand all
               | the complexities and manipulate them with capital has the
               | potential to be very dangerous.
        
           | smsm42 wrote:
           | And lose the profits on electoral show every 2 years? Do you
           | know how much money can one make on an election? That's be
           | silly to give up all that.
        
           | oaiey wrote:
           | You elect a executive branch to protect you. Sometimes that
           | includes executive orders. And if these survive the check and
           | balances, maybe it is for the greater good.
           | 
           | If you do not want that, the country has to work on a
           | functional Parlament and switch away from a presidential
           | system.
        
             | _DeadFred_ wrote:
             | This level of lack of understanding the basics of our
             | system of government is why we used to have civics classes.
             | 
             | If someone is using infomercial level
             | logic/details/understanding to get you riled up, step one
             | is to step back and get a better understanding, not to grab
             | a pitchfork and get bitter.
             | 
             | An post highlighting that the government is soliciting
             | comments shows we don't actually have a king that can do
             | whatever they want. You personally can comment on this
             | proposal, and if you have a compelling argument, can stop
             | it or in the future force your comment to be addressed.
             | Remember the standard is that the Federal government's
             | actions can not be arbitrary and capricious.
        
               | oaiey wrote:
               | I am not a US resident. I take here a pragmatic
               | perspective. Laws, the level of bureaucracy etc is a
               | choice we do in our societies.
               | 
               | > Remember the standard is that the Federal government's
               | actions can not be arbitrary and capricious.
               | 
               | That assumes that everything is regulated by law
               | (unrealistic) and that you have a working parlament
               | (currently not the case in the US). Imagine Russia is
               | invading Canada. Would you prefer a US president with the
               | power of declaring war or the parlament starting to
               | debate over it. A war has 100x more consequence than this
               | KYC thingy here.
        
           | anjel wrote:
           | Its long been this way. Even in the 1950s the were fed
           | justices commenting that if a nuclear bomb were to be stolen,
           | its retrieval would be a reasonable predicate justifying
           | suspension of the bill of rights until the warhead's
           | retrieval.
        
             | plasticchris wrote:
             | Ironically enough, we'd already lost one by then:
             | https://nationalinterest.org/blog/reboot/us-military-
             | missing...
        
           | greenavocado wrote:
           | Freedom has been on a steady decline since the establishment
           | of the Federal Reserve in 1913 when established banking
           | dynasties seized control over the currency of the country.
           | The symbolic destruction of the constitution occurred on
           | 9/11/2001 when the modern police state went into full force.
        
             | tadfisher wrote:
             | We established the Fed (and later, the FDIC) because people
             | were sick and tired of bankers controlling monetary policy
             | and wiping out their life savings. How the Fed turned into
             | the ancap Boogeyman is the real destructive force in our
             | society.
        
               | gottorf wrote:
               | > We established the Fed (and later, the FDIC) because
               | people were sick and tired of bankers controlling
               | monetary policy and wiping out their life savings
               | 
               | The Great Depression, the savings and loan crisis, and
               | the GFC all happened after the establishment of the
               | Federal Reserve. Sure, I guess you could claim that all
               | of those would have been worse without the Fed, but
               | reasonable minds can differ on that without being an
               | "ancap".
        
               | greenavocado wrote:
               | "We" didn't establish anything. An elite few met at The
               | Meeting at Jekyll Island to discuss the matter and the
               | public had zero say in it. Just like we continue to have
               | no say in government today. Bills are rammed through
               | congress and the president's desk and they just rubber
               | stamp everything put out by the deep state or they risk
               | getting CP'd by the intelligence apparatus. The main
               | group of opposition to the Fed was 9/11'd in the sinking
               | of the "unsinkable" Titanic because internal defenses
               | against sinking were deliberately sabotaged just like the
               | power went out for "maintenance" in the Twin Towers for
               | 24 hours before 9/11 when anybody was allowed in to go
               | anywhere inside whereas the building security was tightly
               | controlled since the day it opened without fail up to
               | that point.
        
               | beaeglebeachh wrote:
               | And not long after we got the great depression, and more
               | recently the destruction of the housing market by pinning
               | interest rates near zero bidding property into infinity
               | and then jacking rates up to disenfranchise the youth
               | while everyone else sits on negative real rates mortgages
               | for 30 years that they'll only give up for a kings
               | ransom.
               | 
               | The only thing worse than a bunch private bankers
               | controlling monetary policy, is a central bank
               | controlling monetary policy.
        
           | willmadden wrote:
           | There's an argument to be made that we would be far better
           | off with a benevolent monarchy than whatever this is.
        
             | krapp wrote:
             | There is no such thing as a benevolent monarchy, if that
             | monarchy exists as anything more than a figurehead. No
             | position of absolute and uncheckable power, least of all
             | derived from a claim of divine right or racial purity, can
             | be considered benevolent.
             | 
             | Yes, an argument can be made. And such an argument can and
             | should be quickly discarded with a glance at the last
             | thousand years or so of human history. We tried it. Rolling
             | the dice that the next king or tsar or emperor to own the
             | people will at least treat them kindly. And we decided that
             | being owned by a government in which we have no franchise
             | is a bad idea. A very bad idea.
        
             | smsm42 wrote:
             | If we ever could find a Superman who would agree to be a
             | benevolent monarch, sure. The only problem is that Superman
             | is actually a work of fiction (and even a fictional one
             | would refuse the role) and real people have, let's say, not
             | so stellar record of being benevolent. It's one of those
             | nice ideal arguments that works very well as long as you
             | are allowed to assume magical entities that can't actually
             | exist in the real world.
        
             | TY812 wrote:
             | Dynastic monarchies have one advantage over liberal
             | democracies: If you want your bloodline to stay in power,
             | you are incentivised to leave the country off better than
             | you inherited it - if you act out too much, there's a good
             | chance your offspring will follow you not on the throne,
             | but on the guillotine. This immediately makes 'fuck you, I
             | got mine' style politics unfeasable.
        
             | logicchains wrote:
             | In a monarchy at least there's a chance of getting a good
             | ruler by the genetic lottery. In a political system almost
             | inevitably the people who get to the top are the best liars
             | and manipulators, not good people.
        
         | smsm42 wrote:
         | We're in a permanent emergency now. Which is no surprise - if a
         | mere voluntary act of declaring emergency lets the government
         | do what they otherwise can't - why not declare it over and
         | over?
         | 
         | Check this out:
         | https://en.wikipedia.org/wiki/List_of_national_emergencies_i...
         | 
         | In the US we have 42 (!) ongoing national emergencies. The
         | oldest dating back to 1979. I think most of US-based HN readers
         | never lived in non-emergency US.
        
           | sakjur wrote:
           | That'd be September 1978 - November 1979 and before then
           | during the roaring twenties if I read this right.
           | 
           | Maybe POTUS should declare an emergency to reduce the number
           | of emergencies?
        
             | smsm42 wrote:
             | Looks like that's exactly how they got a full non-emergency
             | year: https://en.wikipedia.org/wiki/Report_of_the_Special_C
             | ommitte...
             | 
             | Of course, it didn't last long - as soon as the focus moved
             | on, emergencies started popping back up.
        
           | oaiey wrote:
           | They are declared in an emergency (most of them are sanctions
           | to freeze money and freedoms of foreigners). That does not
           | mean you live in an emergency. That they are still active
           | means only that the Parlament was too lazy or too blocked to
           | put them in a law.
        
             | smsm42 wrote:
             | Legally, it means exactly that - the government wasn't
             | allowed to do X, but they said the magic word "emergency",
             | and now they are allowed to do X as much as they want,
             | until they decide they are done. Of course, this means they
             | were always allowed to do X, it's just that the public will
             | eat it more easily if instead of saying "the government can
             | take your freedoms anytime" they'd say "the government
             | can't take you freedom ever - except if there's a real
             | dangerous emergency". Functionally, those are exactly the
             | same, but the latter sounds much more "reasonable".
        
               | oaiey wrote:
               | What you describe is the abuse of the power. In the list
               | of US emergencies 80% are sanctions (which qualify as
               | emergencies I would say bc they would not work), 15% real
               | emergencies and the there are the ones which start to be
               | controversial. All what I am saying is: it is a tool for
               | an government. Governments do things wrong. They
               | wrongfully arrest, invade countries, collaterally murder,
               | take bribes, etc. That is daily happening. And the courts
               | and Parlament habe the job to fix , prevent or correct
               | that.
               | 
               | It is not easy to run your life, company or government
               | org without doing once in a while something wrong. It is
               | how you behave afterwards and overall which matters.
        
               | smsm42 wrote:
               | Well, yes it is - but it's completely legal abuse and the
               | society seems to be willing to tolerate it (and much
               | worse abuses, evidently - like total warrantless
               | surveillance absent any proof it's actually useful for
               | anything except partisan political squabbles). I wish the
               | courts and the parliament would be willing to do
               | something about it, but they aren't, and they aren't,
               | because most of the society seems to be fine with it.
               | Sad.
        
       | megous wrote:
       | So this is just to make it easier to ban non-US citizens from
       | using US IaaS (or track them).
       | 
       | Just don't use American IaaS in the first place. It's not like
       | computers are available only in the US.
        
         | patricklorio wrote:
         | Computers outside of the US sure, but the latest chips used for
         | AI training have export controls so not so much.
        
       | djoldman wrote:
       | > (e) The term "Infrastructure as a Service Product" means any
       | product or service offered to a consumer, including complimentary
       | or "trial" offerings, that provides processing, storage,
       | networks, or other fundamental computing resources, and with
       | which the consumer is able to deploy and run software that is not
       | predefined, including operating systems and applications. The
       | consumer typically does not manage or control most of the
       | underlying hardware but has control over the operating systems,
       | storage, and any deployed applications. The term is inclusive of
       | "managed" products or services, in which the provider is
       | responsible for some aspects of system configuration or
       | maintenance, and "unmanaged" products or services, in which the
       | provider is only responsible for ensuring that the product is
       | available to the consumer. The term is also inclusive of
       | "virtualized" products and services, in which the computing
       | resources of a physical machine are split between virtualized
       | computers accessible over the internet (e.g., "virtual private
       | servers"), and "dedicated" products or services in which the
       | total computing resources of a physical machine are provided to a
       | single person (e.g., "bare-metal" servers);
        
       | spiralpolitik wrote:
       | I would argue that for most use cases Internet Services are
       | already collecting sufficient KYC data that it won't make a
       | difference. Try signing up for anything infrastructure related
       | without providing a credit card and/or billing address and/or
       | cell phone number and see how far you get.
       | 
       | That said the system is only as strong as the weakest link in the
       | chain, and while getting a credit card/cell phone number in the
       | US requires a certain standard of identity verification, the same
       | might not be true for other countries (or in cases of deliberate
       | fraud). I think that is what the legislation seems to be
       | targeting.
       | 
       | That doesn't mean it is good legislation or won't have unforeseen
       | side effects.
        
         | jofla_net wrote:
         | This totally depends on what is collected, if the requirements
         | are some form of national id submission, ie. licenses or
         | passports, then it opens all handlers up to tremendous abuse
         | possibilities. Or at the very least paints a big sign on their
         | backs that they handle mass quantities of offical government
         | forms of biometric id, something I think would do much more
         | harm than good in the long run as each company would need to be
         | bulletproof to avoid.
        
       | patricklorio wrote:
       | I read the document a bit, it seems like this is essentially
       | saying that services like AWS need to know the identity of their
       | customer if they suspect they are a foreign entity.
       | 
       | I don't think this would cover VPNs or internet access, mainly
       | just people spending lots of $$ on compute. Is that correct? If
       | so it seems reasonable. If a non US group is spending lots of
       | money using US technology to develop an AI model I do think that
       | falls under foreign trade and should be documented.
        
       | boppo1 wrote:
       | What can I do as a broke guy to stop this? Write a comment? Will
       | it be read or considered?
        
         | greenavocado wrote:
         | There is literally nothing you can do. The intelligence
         | agencies are building the top of the funnel for the gulags to
         | host us in the near future.
        
       | chrisjj wrote:
       | > verify the identity of their foreign customers
       | 
       | Makes you wonder how they are going to first determine which are
       | foriegn...
        
       | 2OEH8eoCRo0 wrote:
       | Thanks. Just commented in support.
        
       | rsync wrote:
       | The talking point we should be using is: if banks know their
       | customers, we don't have to.
       | 
       | The trail of knowing ones customers always leads to payments and
       | finance.
       | 
       | If we are accepting payment for our services with standard bank
       | card transactions or wire transfers, etc., then the knowing of
       | the customer can be centralized at the banks.
        
         | MmmKayWhySee wrote:
         | Exactly. What is the point of repeating KYC across every
         | industry? I work on the KYC team of a banking/finance company.
         | It takes a significant amount of resources.
         | 
         | Unless we create global governing initiatives similar to FATF
         | for IaaS products, American IaaS offering will become less
         | competitive.
        
       | hirako2000 wrote:
       | And who pays for it. Yet another compliance procedure to add to
       | the stack.
       | 
       | I propose that any new regulation gets financed by the the
       | regulators . And retro actively get all regulations to have their
       | cost covered by the government.
       | 
       | Who pays the auditors. Who pays Accountants, who paid for data
       | protections schemes, who pays for random sanctions making
       | countless companies suddenly lose large part of their business .
       | Regulations are great, it should be at the government charge
       | though, so that we can continue to do business, prevent market
       | entry costs which promotes monopolies/oligopolies, encourage
       | compliance.
        
       | wumeow wrote:
       | This seems like the key section people should read through and
       | where they should focus their submitted comments:
       | 
       | https://www.federalregister.gov/d/2024-01580/p-70
        
       | justin66 wrote:
       | Is this more onerous than verifying the name of the person or
       | company you're serving does not appear on the OFAC list?
       | 
       | This is generally not difficult for anyone concerned, unless they
       | happen to share a name with somebody on that list.
        
       | LivenessModel wrote:
       | Simple ID scans are already on their way out.
       | 
       | "Liveness checks" where we have to turn on our webcam and let
       | some stranger make a full biometric model of our head to use
       | basic internet infrastructure is the dystopia we deserve, and
       | it's the one we're gonna get.
       | 
       | I hope the "AI" was worth it. Let's see if you can fix this
       | problem you created.
        
         | pessimizer wrote:
         | Already happening at the IRS. There's a reason government was
         | so reticent in regulating facial recognition in any meaningful
         | way: The government database of everyone's faces, purchased and
         | cobbled together from private _partners_ , isn't complete
         | enough yet.
         | 
         | This has nothing to do with AI, but an out-of-control executive
         | branch and intelligence agencies. AI is just another tool that
         | will make it cheaper.
        
       | rangestransform wrote:
       | are they going to start requiring an ID to buy a GPU too
        
       | elzbardico wrote:
       | As if KYC for bank accounts was an astounding success on
       | international crime, corruption and terrorism financing.
        
       | andybak wrote:
       | If you're going to editoralize the title, could you possibly tell
       | us what KYC stands for?
        
         | kiernanmcgowan wrote:
         | Know Your Customer - it's a term describing how organizations
         | like banks want to know what you're doing so they can avoid
         | enabling criminal activity.
        
       | oaiey wrote:
       | Controversial point: if you run a Internet presence of any kind,
       | this is like a property of land on which you run business. The
       | property needs also a legal owner. For real businesses, this is
       | normal. It is unregulated IT who does not understand this and is
       | still in the wild West.
       | 
       | Obviously, modern data processing creates the rightful fear of
       | surveillance. What we lack is a culture of privacy. In other
       | countries if the state or anyone else wants to access the land
       | registry or any other: good luck without a lawful reason.
        
       | whiplash451 wrote:
       | A number of threads seem to assume that KYC (or identity check)
       | implies that your biometrics or gov ID data is collected/stored
       | by the provider, but it does not have to be.
       | 
       | The identity check is typically done by a trusted 3rd party that
       | can delete the data right after the identity check (and can be
       | required to do so).
       | 
       | So you basically end up guaranteeing that the name, address and
       | D.O.B that you provided to the IaaS provider is actually correct,
       | nothing more and nothing less.
        
       | chmod600 wrote:
       | Idea: let's make it so all emergency powers have to be re-
       | authorized every week by Congress at midnight on Friday with a
       | 90% quorum of physically-present representatives.
       | 
       | If "emergency" action is needed because Congress is too slow,
       | then let's make sure they are working through the process to
       | create real law. Or if they aren't, I guess it wasn't an
       | emergency, and there's no reason for administrative law to "fill
       | in" using a non-democratic process.
        
         | throwway120385 wrote:
         | Great! I'm looking forward to seeing this requirement applied
         | to also dissolve the judicial branch entirely so that Congress
         | is entirely responsible for both enforcment and adjudication of
         | the law. Let's work together to end separation of powers.
        
           | chmod600 wrote:
           | You seem to be suggesting that Congress making law is
           | intruding on the power of an agency to make Administrative
           | law? The latter is not (supposed to be) an actual branch of
           | government. Congress has full power to rewrite all the
           | administrative law as they see fit.
        
       | throw5345346 wrote:
       | There's a surprising amount of debate in this thread on the
       | rights and wrongs of this topic.
       | 
       | As a matter of simple efficiency, what I suggest to you all is
       | that you imagine this was being rolled out by the British
       | government.
       | 
       | Because then you'd all be certain what it meant and what was
       | necessary.
        
       | martinbaun wrote:
       | This seems like a slippery slope.
        
       | gwbas1c wrote:
       | > We have 4 days to contest KYC being required by internet
       | services
       | 
       | The acronym "KYC" doesn't appear in the linked article. What is
       | this even about?
        
         | eks391 wrote:
         | Know Your Customer. It's when you are asked for legal docs so a
         | business can verify your identity. Like what banks do
        
       | zarzavat wrote:
       | Can anyone glean from this wall of text what documents Uncle Sam
       | is going to expect me, a dirty and potentially smelly foreigner,
       | to submit in order to keep my AWS account?
        
       | CatWChainsaw wrote:
       | This will pass regardless of comments and KYC will only get more
       | strict from here on out. What other end result could there have
       | been when the combined gov-corp-tech behemoth is incredibly data-
       | hungry, obsessed with draconian surveillance, and about to be
       | deluged with malicious AI across the internet? It starts with
       | "suspected" foreign actors and ends with everyone needing to
       | prove their humanity for every little thing on the web. This is
       | why we can't have nice things..
        
         | greenavocado wrote:
         | Next thing you know if you make one comment about Israel or
         | certain coincidences you will be debanked, cut off from all
         | Internet services, unable to make payments, blacklisted from
         | all employers, your payment accounts frozen, ultimately
         | resulting in eviction for non-payment, then shortly thereafter
         | homeless, hungry, dead, or in prison.
         | 
         | That's the logical end-game of all this in case you don't have
         | the foresight to see where this road leads.
        
           | CatWChainsaw wrote:
           | Even foresight isn't enough to avoid it if you don't have the
           | fortitude to avoid paths of least resistance, or the ability
           | to oppose entrenched power structures.
        
       | xbar wrote:
       | If I host a site that is vulnerable to XSS, is it inadvertant
       | Iaas?
        
       | MmmKayWhySee wrote:
       | I work on KYC systems at a medium/large sized financial
       | institution. The trend of adding KYC requirements to more and
       | more online services is troubling.
       | 
       | KYC adds a huge burden to anyone trying to offer a service.
       | Implementing KYC imposes significant burdens on service providers
       | due to the complexity of identifying users across different
       | countries and understanding varied regional regulations. You end
       | up outsourcing your KYC to another company. But most KYC vendors
       | don't support all the countries you want to support, so you
       | either end up limiting your service to the service area of your
       | KYC vendor. Or you end up integrating multiple vendors together,
       | which is challenging since vendors generally prefer exclusivity.
       | 
       | If you didn't have an engineering team working on KYC before, you
       | will now. You will likely need to add to or expand your
       | compliance team. Your company will shift either slightly or
       | significantly from being an engineering or product driven company
       | to being a compliance driven company.
       | 
       | KYC raises barriers and entrenches incumbents. Look at financial
       | institutions and porn.
       | 
       | KYC is generally not evidence based policy either [1, 2]. Bad
       | actors get around your KYC requirements, and your KYC system ends
       | up being a hurdle for innocent users. A lot of KYC systems rely
       | on data aggregators (aka the people who buy your personal data),
       | and if you aren't "in the system" either because you are young,
       | poor, or privacy conscious, you are faced with suspicion.
       | 
       | My experience is that anti-fraud systems tend to weed out bad
       | actors better than KYC systems that are mandated in a
       | governmental top down manner.
       | 
       | 1) https://www.economist.com/finance-and-
       | economics/2021/04/12/t...
       | 
       | 2)
       | https://www.tandfonline.com/doi/full/10.1080/25741292.2020.1...
        
       ___________________________________________________________________
       (page generated 2024-04-25 23:01 UTC)