I think it is important to note that the regulations (edit: in the US) in question do not require banks to ask for a physical address. That is one of several possible methods of identity verification.
When a bank requires a physical address, that is the bank being lazy and forcing people to use the identity verification that is easiest for the bank.
The only way to fix that is to require banks to offer other verification methods through regulation.
When a bank requires a physical address, that is the bank being lazy and forcing people to use the identity verification that is easiest for the bank.
The only way to fix that is to require banks to offer other verification methods through regulation.