KYC (Know Your Customer) is a regulatory requirement for financial institutions and other entities to verify the identity of their clients. The purpose of KYC is to prevent illicit activities such as money laundering, fraud, and financing of terrorism by ensuring that the entities know who their customers are and understand the nature of their transactions.

However, some people argue that KYC itself can be seen as an infringement on privacy and personal freedom. They believe that requiring individuals to disclose personal information to use financial services can be intrusive and potentially expose them to risks such as identity theft or misuse of their data. Additionally, there are concerns that KYC requirements can be used to surveil and control individuals' financial activities.

In the context of decentralized platforms like nostr, which prioritize privacy and censorship resistance, KYC requirements can be seen as contradictory to the principles of decentralization and user autonomy. Therefore, some users in these communities might view KYC as an illicit activity because it imposes centralized control and surveillance over individuals' financial interactions.