Author: BlockWeeks

When the news of Hong Kong's new stablecoin regulations requiring KYC came out, the reactions in my social circle and various crypto communities were almost identical to what you mentioned: "scoffing" is the most polite way to put it, with more mixed feelings of "FUD," "another victory for centralization," and the sarcasm and disappointment of "Web3 is dead."

As someone who has heard about Bitcoin since the MT.Gox era, charged into the ICO frenzy of 2017, and mined through the DeFi Summer, I completely understand this sentiment. It is not just a dislike for an additional "troublesome" procedure, but a defense of that deep-seated ideal of crypto fundamentalism within us.

But today, I want to temporarily set aside emotions and peel back this uncomfortable "KYC proposal" like an onion, to see whether it is a poison that stifles the soul or a bitter medicine we must swallow.

First Layer: Why Do We Instinctively Hate KYC? That Feeling of Being Offended

The aversion to KYC among crypto users is ingrained in our genes.

1. Philosophical Betrayal: What did Satoshi Nakamoto create Bitcoin for? It was to establish a permissionless, censorship-resistant, peer-to-peer electronic cash system. Its essence lies in "not having to trust any centralized third party." KYC, in essence, hands "trust" back to the government and centralized institutions, requiring us to prove our identity to participate in transactions. To fundamentalists, this is a betrayal of the entire spirit of crypto.
2. Practical Friction: What does Web3 pursue? It seeks a smooth, seamless experience of connecting to global finance with one click. A wallet that travels the world, without borders or cumbersome account opening processes. And KYC? Uploading ID cards, taking selfies, facial recognition… This traditional financial "bureaucratic process" is brought in unchanged, instantly reverting the smooth experience of Web3 back to the Stone Age of Web2.
3. Fear for Security: What do people in the crypto space fear the most? Besides losing money, it’s being "unboxed." Handing over our real identity information to centralized platforms is akin to giving someone the keys to our life and fortune. We have seen too many cases of platforms being hacked and data breaches. In a world where "private keys equal sovereignty," voluntarily submitting personal data feels like "running naked" in the digital world.

So, when Hong Kong comes waving the KYC stick, our first reaction is resistance and mockery, which is completely normal.

Second Layer: Why Do We Need This Bitter Medicine? Hong Kong's Conspiracy and Reality's Pull

Now, let’s elevate our perspective. Do the elites at the Hong Kong Monetary Authority really not understand decentralization? No, they do, but their target audience has never been us "crypto nomads," but a much grander vision.

The drawbacks are obvious, but where is the benefit?

1. Taming the Beast to Prevent Systemic Collapse: We cannot forget the death spiral of Terra/Luna and the countless nights of terror when stablecoins decoupled. An unregulated, non-transparent stablecoin is a ticking time bomb. Hong Kong's plan centers on controlling the "issuers." It requires 100% high-quality reserves, asset isolation, and regular audits. What does this mean? It means that a licensed stablecoin in Hong Kong (like the future compliant HKDG) will be far safer than the vast majority of stablecoins currently on the market. This is establishing an "engine that won't explode" for the entire system.
2. Building Bridges to Welcome TradFi Regulars: We keep shouting for "institutional entry," but do the real "big money"—retirement funds, insurance companies, family offices—dare to touch an anonymous, chaotic, unregulated market? Absolutely not. KYC and compliance are the entry channels paved for these trillions of traditional financial (TradFi) funds. A compliant, regulated stablecoin is the only settlement tool they dare to use for large-scale entry and exit from the crypto world. Without this bridge, institutions will forever watch from the other side.
3. Cleansing the Stigma, Competing for the Narrative of "Clean Money": For a long time, cryptocurrencies have been associated with money laundering and illegal financing. KYC, while sacrificing anonymity, significantly raises the transaction costs of illegal funds, making crypto assets more acceptable to mainstream society and regulators. This is a "narrative war," and Hong Kong is telling the world through action: the Web3 here is clean, safe, and presentable.

Hong Kong's conspiracy is clear: sacrifice a portion of decentralized idealism in exchange for financial stability, institutional trust, and a strategic position as a global Web3 hub.

Third Layer: Far-reaching Impact—The World Will Be Divided, Where Do We Go from Here?

Once this plan is implemented, it will have profound effects on the entire crypto world:

• Accelerated Formation of "Two Worlds":
  • Compliant World (CeFi/TradFi): Represented by Hong Kong, composed of licensed exchanges, compliant stablecoins, and KYC users. Here, the capital volume is large, transactions are secure, but everything is under regulation.
  • Native World (DeFi/Cypherpunk): Continuing to grow wildly on public chains like Ethereum. Here, there is no permission, high anonymity, and abundant innovation, but it also comes with hacking attacks and protocol risks.
• "Gatekeeping" of On/Off-Ramp Channels: In the future, the channels from fiat to cryptocurrency (On-ramp/Off-ramp) will be strictly controlled. You can roam freely in the decentralized world, but when you want to convert your earnings back to fiat, you will most likely have to go through a KYC "gate." Anonymity will exist more on-chain rather than throughout the entire financial link.
• "Bloodline Theory" of Stablecoins: Stablecoins in the market will be divided into different tiers. Licensed, transparently reserved "noble stablecoins" (like compliant HKDG/USDG) will become the first choice for institutions and large-scale applications. Meanwhile, those with opaque reserves and ambiguous issuers will see their survival space squeezed, gradually becoming toys for high-risk enthusiasts.

My Final View: A Painful Rite of Passage

As we reach the end, my feelings are complex.

It feels like a young person who once pursued a life of adventure must, upon reaching middle age, don a suit and walk into an office for the sake of family and career. We have lost that pure freedom, but in exchange, we have gained stability and a broader space to express ourselves.

Hong Kong's KYC proposal represents a painful "rite of passage" for the entire crypto industry. It makes us old users feel betrayed and uncomfortable, but it also clears the biggest obstacles for the industry's "breakout" and "growth."

We will face clearer choices: stay in that idealistic, yet stormy decentralized native land? Or pass through the narrow door of KYC to embrace a larger, more mainstream, but also more constrained new world?

Perhaps the answer is not an either-or situation. The true future is the coexistence of two worlds, where we learn to flexibly switch our identities and assets between the two worlds based on different needs.

Hong Kong has not provided a perfect answer, but at least it has given an answer. And for us users, understanding the logic behind this is likely more valuable than simply scoffing at it. After all, in the world of investment and survival, understanding the rules is always the first step.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。