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Comment by X6S1x6Okd1st | Hacker News Reader

Tbh the ETH community should probably work with regulators to get a standard for what logs to produce. As it currently stands anyone could generate the reports needed for DeFi on ETH, but it'd take understanding each contact to do it.

If there was a standard eth log to emit then contacts could choose to emit it and then as long as one actor in the environment coalesces all of those logs and reports it then they'd all be in compliance

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Except we aren't tracking names, addresses, and SSNs of the holder of each ETH wallet, which is required for the IRS reporting under this proposed amendment to the statute.

Well maybe they should? The whole argument seems to be "we want to do questionable stuff, why doesn't the government let us?"

IMO, governments should provide a service for linking identity to cryptocurrency account addresses. Let me present my passport and link my account using a web service or at the post office.

This way, DeFi protocols don't have to worry about anything to be compliant and if the government provides an attribute on-chain, it can be used to build democratic DAOs with "One person, One vote" instead of the plutocratic operation of today's DAOs.

Gist with details about implementation: https://gist.github.com/numtel/c2030ec401959a45825ee3efc6f3b...

DeFi protocols (that want to) should still conform to a spec that gives the three letter agencies insight into what kind of action was performed, e.g. it's pretty unclear what exactly AAVE's debt tracking is unless you read the docs, multiply that by every single DeFi app & protocol and it's really intensive.

It'd still be much better for all of the addresses that have interacted with a KYCed interface (e.g. exchange)

I wouldn't be surprised if years down the line US govt starts requiring validators to not include certain txns like tornado cash.

Also that PII clearly shouldn't be in the public logs.

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