The document is interesting and somewhat makes sense. They talk about a potential KYC requirement when more than $10k in equivalent for transferred, for instance, and I think it is totally fair. What I hate is when KYC is needed for minor things like a couple of hundreds of dollars. I think that something similar should hold for taxation. When someone has a big amount of money, it makes sense that this person should explain where it came from as well as pay taxes for the income. However, why should the government care about some minor transactions and income that is, say, less than $400 in developing countries and $1k per month in the developed countries? The gov won't lose much from not getting these taxes, while for the earners they might be a big burden (unless we are talking about less than 5% taxes, but unfortunately that's not the case where they get implemented). As for the general idea - well, they make some good point on the benefits for the regulated crypto market, but the big loss in the key idea of decentralization, of freedom. It's hard to say that we should give up this freedom.
Governments can implement KYC on exchanges, and are already doing so on all mayor exchanges. Nowadays they all require endless proof of identity. Most ask for phone, address, full name, and even a picture of yourself holding your ID which is extremely risky since that can be cloned a million times and spread around the net, which is why I have always opposed to do such thing, you never know where that picture would end. I did read that pictures like these were being sold on the dark web so I got scared and pretty much left all exchanges because I saw such requirement coming on Poloniex which is were I traded the most. Back then everyone was using fake names and stuff, it was riskier to give some unregulated exchange your real details.
Anyway, what I don't understand is: How are they going to implement KYC for actual bitcoin peer to peer transactions? As far as im concerned, that is impossible, which is what ironically makes BTC so undervalued at any rate.
