From Cointelegraph

June 03, 2025 08:01 am:

Coinbase data breach leads to renewed calls to eliminate KYC requirements in licensed crypto exchanges. Hackers bribed overseas agents for 70,000 users’ personal info. KYC criticized for enabling crime, but exchanges must comply due to regulatory mandates. Privacy-enhancing alternatives like ZK proofs face cost and complexity limitations.

KYC poses a security risk for centralized crypto platforms. Users’ personal data is collected for fraud prevention, but determined attackers find ways to bypass the system. AI-generated fake IDs have successfully bypassed KYC verification on exchanges, highlighting weaknesses in the system.

Coinbase breach raises concerns about user privacy and security. Illicit actors may have access to personal info, leading to potential risks for affected individuals. KYC was not designed for crypto and unfairly exposes users to vulnerabilities. Calls for modern solutions like ZK tech to balance compliance and privacy.

Despite calls for KYC reform, regulations demand personal data submission for crypto users. KYC practices persist globally to prevent illicit activities in the industry. Users advised to enhance security measures and remain vigilant against potential threats. ZK technology offers privacy benefits but faces implementation challenges due to computational needs and costs.

Read more at CoinTelegraph: Coinbase data hack sparks calls to scrap KYC