The big problem Anthropic faces isn't implementing a KYC workflow, but the fact that many if not most of their own employees are no longer allowed to work on Fable/Mythos.

Also their API customers and downstream customers (e.g. Cursor users) would also need similar infra, and probably a decent amount of users would just choose another model that doesn't require ID & an immigration status check.

And API is much more profitable (relatively) than subscribers for them.

What a hilarious situation. Clearly, they never even imagined their precious government regulation would be turned against them.