I think cheap and ubiquitous internet access has changed the game here significantly and it seems far easier to bring new products and technologies into the merchant space than it ever has been before.

> Visa/MC can straight up ban you from processing payments without rhyme or reason while they hide behind KYC/AML law

Yes, but if you had a dozen other providers to turn to, this may not be an issue, and may force the established players to have a more transparent policy.

> The government can't hide behind these laws.

I would consider the "No Fly List" as a terrifying example of where this naivete inevitably ends.