Leaving KYC issue aside, since *all* my coins are KYC 😉 , am I right in interpreting a hot custodial wallet greatest risk is simply losing the coins in it? So a balance risk management problem.
it seems to me the major risk is that all your transactions are eventually linked to you pretty much publicly through chainalysis. This doesn’t leave aside KYC though, and since all your coins are KYC 😉 managing the data sharing and trusting custodians not to give away, sell or leak your data is the major issue for security in the future. Otherwise, yeah, losing your stack isn’t fun either.