Tezos (XTZ), a decentralized blockchain that governs itself through an established digital commonwealth, recently outlined the operational details regarding the Know Your Customer and Anti-Money Laundering (KYC/AML) checks that will occur during its betanet launch.
— Tezos (@tez0s) May 29, 2018
Tezos plans to comply with the evolving regulatory landscape by continuing to perform KYC/AML checks, as they have become the norm for blockchain projects moving forward.
Despite claims that Tezos respects the privacy of their contributors, various investors were dissatisfied by how the checks will be handled. According to a Reddit user who followed the protocol, a phone number, full name, address, a government-issued ID and a selfie were required for compliance.
Only investors who successfully complete this process may receive activation codes that correspond to their public key hashes generated through the donation period. Tezos has revealed that it has chosen to implement KYC/AML to promote careful deliberation and plans to take personal privacy seriously.
For the most part, investors and contributors have reacted to the checks disparagingly, with various Reddit users agreeing that the demand to provide proof of identity violates privacy, and will begin rendering blockchain as a useless power as an emerging industry.
In a statement to Coindesk, another Tezos investor concluded this check would be a breaking point for various other investors, as it stands as a breach of trust, and compromises Tezos’ initial proposition that sought a safe-haven for property rights. While others who have spoken out have taken the stand that Tezos may be acting in good faith, the majority of investors seem to agree with the fact that they are in the wrong position to launch this upcoming network.