What the Coinbase Hack Reveals About Crypto Regulation and the Harm Principle

The article explores how governments justify invasive crypto regulations under the “harm principle,” claiming to protect users from bad actors. Using the Coinbase hack and U.S. KYC mandates as examples, the author argues that excessive data collection makes users more vulnerable, not safer. Drawing from personal experience at Paxful and NoOnes, he shows how regulatory overreach is eroding the very privacy and trust that crypto was built to ensure — and forcing entrepreneurs to choose between compliance and their customers’ freedom.