How would you handle chargeback claims? Should all users of the system share in the fraud risk?
Obviously, the answer is to disallow that.
And if people break the law, and do it anyway, by trying to be "clever" then a judge and jury can punish them.
This punishment works especially well, with this thing called "discovery", in which the legal system can parse through your internal communications, to see if you are intending on defacto banning it.
> It would be challenging to stop without mandating some explicit formula too
No it wouldn't be.
Just do it, like we do many other laws. Give a vague description of whats not allowed, and let the jury figure it out. And give a large fine if they lose the court case.
That's enough deterrence to stop people from gaming the system. Just give them a huge fine if they try to do that.
If you mean "those in power who can and do make decisions that a majority of voters wouldn't actually support", then sure, I think that's the case, but that doesn't make it right, and that doesn't make it inevitable, either.
YMC/AML has been this way since shortly after 9/11 (aka 2001).
The level of outrage from the voters is…. Tepid.
Will it change at some point? Sure. Not seeing it happen anytime soon though.
Or does someone have to sit down and write a law or regulation that says "the risk for providing payment services to an online pornography company is X, and thus the processing fee is Y%"? I guess that could work?
But the thing is that there isn't much incentive to do this kind of skulduggery, because the companies are only protecting themselves from lawsuits and protests when they ban businesses, but imposing high processing fees would probably not satisfy the would-be tyrants who were trying to force these "bans".
Ie make it legal for the provider to report it, perhaps anonymously.