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Two reasons:

  1. accessibility
  2. compliance

read more here: https://www.blink.sv/blog/simplifying-bitcoin-user-friendly-account-creation-and-recovery-in-blink

if the authorities request user data, will you provide it?
yes, Blink is a regulated financial institution and if Salvadoran authorities make a valid request, then Blink will share information with the authorities, and has done so in the past. Blink also must submit SARs (Suspicious Activitiy Reports).