This could be dangerous because it creates a precedent in implementing some privacy control on Cardano. Which is to say that later a government won't ask to implement more transparency and control tools in their favor and the argument that it cannot be done because it is a decentralized and permissionless blockchain will not be so valid anymore.

Question

Answer

Con: ''comply with X law unless the tool you are using has no way of complying'' said no government ever.

Answer

Con: This is a logic fallacy. Let us remove DIDs, lets remove Smart contracts lets remove L2. They can all be used for KYC. There is nothing inheritly wrong with CS in itself and its ill suited for regulation. Goverment could ask you to implement a smart contract for KYC or to enforce a DID to follow transaciton or else block them etc.

Answer

Con: There will be legislation for crypto in general, governments will not consider each chain separately.

Answer

Pro: Any cryptocurrency should operate just like cash how soon everyone has forgotten what happened in Canada during the trucker strikeCanadian government seizures personal asset https://www.newsweek.com/banks-have-begun-freezing-accounts-linked-trucker-protest-1680649

Answer

Pro: The problem if it is made in L2 is that the contract is made by a third party, it may have some intentional error or not, they can also change the rules of the game as AXIO did, which started with a 100% pool when the ISPO ended. They said I don't give you anything. I'll give you the ada back and if you want them, complete this KYC. They changed the rules of the game and since they handle the contract they could do it without consulting anything

Answer

Con: To me this is a different problem than CS, if this is the fear we should be talking about a different CIP to improve SPO privacy, mempool privacy and maybe even zero knowledge proof on block production to not be able to distinguish the operator that submitted the block.

Cardano Contingent Staking

Pros

Cons

Any cryptocurrency should operate just like cash how soon everyone has forgotten what happened in Canada during the trucker strikeCanadian government seizures personal asset https://www.newsweek.com/banks-have-begun-freezing-accounts-linked-trucker-protest-1680649

There will be legislation for crypto in general, governments will not consider each chain separately.

To me this is a different problem than CS, if this is the fear we should be talking about a different CIP to improve SPO privacy, mempool privacy and maybe even zero knowledge proof on block production to not be able to distinguish the operator that submitted the block.

''comply with X law unless the tool you are using has no way of complying'' said no government ever.

Selected claim, opposing its parent

Pro claim 1

Pro claim 2

Any cryptocurrency should operate just like cash how soon everyone has forgotten what happened in Canada during the trucker strikeCanadian government seizures personal asset https://www.newsweek.com/banks-have-begun-freezing-accounts-linked-trucker-protest-1680649

Con claim 1, children below

There will be legislation for crypto in general, governments will not consider each chain separately.

Con claim 2, children below

Con claim 3, children below

To me this is a different problem than CS, if this is the fear we should be talking about a different CIP to improve SPO privacy, mempool privacy and maybe even zero knowledge proof on block production to not be able to distinguish the operator that submitted the block.

Con claim 4, children below

''comply with X law unless the tool you are using has no way of complying'' said no government ever.