The hypothetical example case laid out is understandable.
The operational reality is that in order for Brave as a business and organization to operate within the rule of law, while also providing features that allow for people to add, remove or convert BAT to crypto and USD, or remove BAT earned through rewards off the platform, that it requires using a custodial partner that’s licensed and regulatory compliant. Uphold is our partner that handles this, and in order for them to operate with regulatory compliance, they are required to have compliance checks as part of their process to ensure that people are not defrauding the system, and/or using the system in a way that could support money laundering, violates sanctions, etc.
This is not a situation that’s unique to Brave. Nearly every major exchange requires similar measures, and in this case it’s handled through Uphold directly. We’re working on making more options available, and have our Crypto Wallets feature natively integrated into the product for fully decentralized blockchain transactions and functionality.
When we’re talking about operations within Brave Rewards, which has publishers and creators spanning from the Washington Post to first-time YouTube Creators, we want to have a platform that makes it easy for people to take BAT revenue as an alternative to other models in-market, protects the organization from fraud risk as much as possible, and also operates with compliance to ensure we can remain in business and operate within the rule of law.