I don't get the whole idea of treating identity verification as a private enterprise problem. I realize it's easy to just blame LinkedIn or Microsoft here, but the core issue is architectural. We are trying to solve a public utility problem by building private honeypots.
The government should provide an API or interface to validate a user, essentially acting just like an SSO. Instead of forcing users to upload raw passport scans to a third-party data broker, LinkedIn should just hit a government endpoint that returns an anonymized token or a simple boolean confirming "yes, this is a real, unique person." It gives platforms the sybil resistance they need without leaking the underlying PII.
We have exactly that in Ukraine. And in Poland. And in many other countries.
This does not conform to the requirements of american KYC/AML provisions that require KYC service to store and leak PII.