A collaboration between Bored Ape Yacht Club and Animoca Brands will require KYC registration. This has immediately drawn criticism related to centralization, with many saying they will not register.
It appears that the Bored Ape Yacht Club will require KYC registration for its collaboration with Animoca Brands. The official Twitter handle posted about a launch on Animoca Brands that would require KYC registration.
Some users have also received a form asking them to fill out personal details, including address and licenses.
Bored Ape surprises community with KYC measures
The KYC registration for this will only be available for two weeks. It is unclear what the collaboration actually is, though a website has been created for it. Bored Ape Yacht Club says that users will want to be a part of it, even though it “doesn’t like KYCs either.”
Animoca Brands is a Hong Kong-based game company that publishes games, including blockchain-based ones. It is working on play-to-earn economies. The crypto community has unsurprisingly grown angry at the development, with many saying that they would not register for the launch if it involves KYC. They argue that it goes against the trustless principles of web3.
Some say that this is just a way for authorities to monitor the market. Others believe that what’s wrong is the fact that it is not revealed what they are signing up for.
With only a few hours having passed since the announcement, the full force of resentment is likely to be seen over the next few days. Meanwhile, governments are bearing down on crypto, including NFTs.
Authorities bearing down on crypto
KYC registration has become an increasingly common aspect of the crypto market. There are even growing opinions that KYC registration is needed for NFTs to remove their wild west reputation.
The NFT mania has drawn worldwide attention and crypto executives have said that a crackdown could be imminent. U.K. tax authorities have already seized NFTs in a fraud case, and it may just be that other governments do the same to prevent any illicit activity.
Taxation is also likely playing a big part in the crypto market, with the IRS seeking ways to limit tax avoidance through crypto. The agency has told Congress that it needs more ways to impose controls on the market. Other countries, like South Korea, have excluded NFTs from taxation.