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>There's no sense to these systems, you can just be cut off with no warning and the payment processors have no obligation to care or tell anyone anything.

You can thank the Bank Secrecy Act as amended by the PATRIOT act for that. It basically deputized every licensed money transmitter to act as an extension of law enforcement through the imposition of KYC/AML requirements, which is accompanied by the tendency/incentive to de-risk the bank.



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