WE, OUR AGENTS, OFFICERS OR EMPLOYEES AND AFFILIATES, SHALL NOT BE LIABLE FOR ANY LOSS OF PROFITS, LOSS OF USE, LOSS OF DATA, INTERRUPTION OF BUSINESS...
And that's the actual answer. You at coinsource have placed a waiver so that if your server is compromised it's not your fault. You can't be held liable for your lack of any data protection.
That's one of the key problems with something like this. That, and something else someone brought up earlier. If it becomes the standard and displayed on exchanges, then it basically turns into :'pay us, or your coin will fail'. And not only that, but 'pay us and trust us with your information'.
I'm sort of mixed about programs like this. As on one hand, as an investor, I can see it helping somewhat. It won't protect against most of the scams run here, and I expect a lot of devs who run proper scams to simply use fake ID. But if trying to be objective, and if I pretended I was an honest dev, I have to ask myself would I be willing to use this program and provide my ID to some random company?
The answer is probably no, as CoinsSource hasn't been around long enough to be 100% trustworthy with such sensitive info. And even if I think they are, I'd have to worry that all of its employees are 100% trustworthy, forever, and you will never have any data breeches/hacks... again, forever, nor none of its employees would go full-blown evil and try to blackmail me. There are simply too many crazy people in this forum to feel safe.
A dev could be honest, yet run into problems. Perhaps his coin tanks due to bad decisions, or competition, or coding problems. Yet he did everything honestly. He'd have to worry some nut out there who lost money won't come after him. People make bad decisions and tend to yell 'scam', as its human nature to look for a culprit besides their own bad judgement. Here they not only yell scam, but go into mob, pitchfork mode. It wouldn't be worth the hassle or risk if I was a dev to even bother with.
A code review + simple BTT account verification may work better, as a lot of the scammier coins have hidden premines or shady code, and catching this early would be of benefit to people.