What does it take exactly to whitelist a bitcoin address? Am I reading this blurb from Bitstamp the same way you are? It doesn't appear on its surface to require any KYC info from its users (though I suppose that could be built into whatever the whitelisting process is).
there is a new requirement to upload a photo that "proves" it's your address. i can't find anything specifying the exact photo requirements---not sure if it's like a selfie with the address written down, or what.
i figure it's supposed to function as a legal declaration that your withdrawal address is
yours. this removes the possibility of bitstamp having liability for third party money transmission. it means that if any illegal activity is linked to outputs that came from your account, they can point the finger at you and send law enforcement after you. it'll also make snooping by tax authorities much easier since most people will just hand over their privacy (maybe even a master pubkey) instead of taking effort to tumble their exchange withdrawals.
Anyway, KYC requirements are only going to get stricter and more pervasive, not less.
as a matter of fact, the USA is on the cusp of passing regulations that will require the same thing.
https://www.coindesk.com/fincen-wallet-rule-defi
