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New BAYC Project Asks for KYC

The new BAYC project is drawing flak from different corners of the community.

Popular Non-Fungible Token (NFT) image collection, Bored Ape Yacht Club (BAYC) has partnered with Animoca Brands for a new initiative.

It sounds like positive news for NFT lovers but they were dismayed when BAYC asked for KYC details of the users for this new initiative.

Some users even received a form asking for personal details.

Crypto Twitter did not waste a second in criticizing this requirement. They all argued that this would defeat the purpose of Web3.

Another set of users was not disturbed by the KYC requirements but they wished to know the reason for such a drive. Everyone is entitled to know what their personal details will be used for.

Also worth noting is that no specific details about the collaboration have been revealed as of now. It only has a website.

This is not the first time the NFT collection has drawn flak. Some crypto community members believe that the project does not have a use case.

Some allege that regulators are pushing for this to have better oversight of the project.

Lately, regulators around the globe have grown wary of NFTs. They believe that NFTs can be used for money laundering, rug pulls, etc.

Cybercriminals purchase NFTs with illicit funds and then sell them. They earn clean money with no connection to the original criminal activity, thereby laundering the funds.

Moreover, NFTs have been the victim of wash trading.

bitsCrunch an NFT analytics company has alleged in the past that BAYC has been wash traded to inflate its price.

If it is true, then many of the sky-high prices of the BAYC images are artificially inflated.

Talking about KYC, it could also be an attempt to make the collection mainstream by complying with the regulations. Compliance will legitimize the project, thereby bringing in more customers.

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Cover Photo Source: Pixabay

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