KYC is bad. KYC verification privatization is worse.

Know your customer laws are rapidly being legislated into existence to 
cover many previously unregulated and normal activities. In order for a 
state to make KYC equitable for all people the legislation should lay 
out government infrastructure for providing the KYC verification 
services themselves.

Having the private market do it is just a way to secretly disenfranchise 
huge segments of the population giving them no possible recourse for 
false positive rejections.

Proposals like California's 
https://calmatters.org/politics/2024/05/california-porn-id-bill/ end 
results will be banks and other corporations doing the KYC and those 
types of corporations will mistakenly deny service to tens of thousands 
of people in order to prevent one actual real positive from making it 
through. (unless you have money or power to get attention when wronged)