Yes. On chain covenants are still way more limited than what you can achieve with a multisig (you can’t update them later, for example)
Discussion
Does this mean that if A sends some bitcoins to B under a KYC multisig then B could update the KYC rules before sending to C? But those rules couldn’t be updated by B under KYC implementation through recursive covenants?
Basically which partie(s) have the authorization to update the rules under a multisig implementation?
In the case of A sending to B, the KYCing party in the 2-of-2 can update the rules by just changing when they sign and when they don’t.
But those rules cannot be updated by the KYCing party with covenants and also can do way less