That part of the interview isn’t as clear as I’d like, and I’ll take the blame for that and try to clarify the point here. The PII data is not on-chain, however, the whitelist solution requires more parties to hold the PII data than would be needed under a tagging solution. For example, most crypto-exchanges are requesting PII data now. That could be reduced to one regulated entity tagging addresses. This could also be done on Ethereum, except that there are still many experiments doing things differently on a per-token basis. It is like incompatible file formats and the absence of a specification which slows down progress. As long as things are as fragmented as they are now, it is unlikely that a consortium will develop to solve KYC/AML transitivity. The Ravencoin asset solution with tagging can solve it, but it is dependent on adoption.