I always have to foreword this by saying that, you need to do background research on the Foreign account taxation compliance act, known as Fatca. This is the main method america uses to force its banking laws, which encompass crypto, onto the rest of the world.

The second tool is Ofac and ctf/aml and Sanctions Regimes. But let's be honest, all of europe's adopted aml/ctf/kyc is simply what Washington told it to do, same goes for Japan, most other countries, their ctf/aml policy is ghost written by america, it's delivered from on high.

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This is why TC got hit by the way, fatca, ofac are the main two prongs, the third prong is international cooperation with most UN law enforcement, so no one would protect Torn C

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Regardless of how you may feel about Ukraine or Taiwan, it is not DeFi's job to do the geopolitical bidding of america, it is not DeFi's job to destroy itself to appease peoples political goals. Those are not the only two countries being banned from crypto, and any new day america might add a new enemy to the long list it wants the world to financially exclude from the financial system.

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The United States forced every other country to install strict KYC for forex, let that sink in, they forced every other country in the world to end anonymous broker and banks using the above political tools.

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They have enough meta data to globally do "geolocation address tainting and contamination", they have enough ZachXBT's working for them to effectively mandate permissioning directly into smart contracts and multisig layer 2s. Those white list and black list exist.

• -They can be used to debank you from crypto offramps and will be
• -They can pass new laws where if you break your address history to use TC or monero, its a felony
• -They can mandate these permissioned lists directly into smart contracts on Layer 2s
• -They can absolutely and definitely will mandate any middle ware or front end with these address filters

-More importantly they will make a deemable list of Responsible Persons, encompassing most of the entire project development team, who are on a need to know basis of collecting Doxx information, anyone who doesn't put the white list filters on their frontends or backends, could conceivably be extradited and imprisoned

• -They are basically saying in the 280 page Treasury Proposal they will force the above requirement on Validators and Sequencers and RPC Nodes and Relayers

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Yes they can can catch us all because as the Bitcoin Samurai and Monero people taught us, you have address taint. The existence of address taint will be used to destroy DeFi globally.

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Now what is the more pragmatic outcome here?

My guess is the product market fit is so huge for crypto outside of america, that ultimately a lot of the companies end up running their DeFi products out of BRICS+ jurisdictions, and at least a third of all the smart contracts end up being on american Sanctions list, that is the conceivable outcome, because India's DeFi teams will not block Russians, and so forth, you will get a bifurcated system.

Loosely permissioned automated finance on smart contracts will definitely take off, much like mobile payments exploded overseas outside of america. The Europeans will put tremendous amounts of middleware and permissioning on their fake faux DeFi of course, but it will be popular in Europe.

I'm arguing that many developing and emerging markets will not use Nato backed and Washington backed aml guidelines, they will move to a system that allows them to take on most of these african countries and various other US sanction countries, including Russia, Ukraine, Syria so forth.

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DeFi itself will be hard banned in america, accessing any of the BRICS smart contracts will likely be a felony of some sort. Doing it via your own backend use of javascript or python may or may not be a felony, but I'm sure they'd like to do it.

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But I want you to take a long deep pause here, and realize that your war mongering and american politics is what allowed the political climate to do this, the fixation on sanctioning Russia, proved Russia's theories about global banking relations correct, and it proved that these banking laws are really just extensions of Washington and Tradfi getting their rent seeking cut and monopolies.

and indeed Russia Politics and DeFi are not compatible, they are not reconcilable.

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