How does the KYC free works if one of the participants is using fiat? Only f2f?

Robosats is the GOAT

it's not about the ramps you use to transfer fiat, it's about the record of acquisition of {cryptocurrency}, tied to timestamp and documents. here, bank, or what have you of any of those cool kid, easy-to-use money transmitting applications know that you sent X some {fiat amount} but have no clue what for. the tx. onchain has no fiat pair to be linked to, at least 'external data'-wise.

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