Without proper governance, no. How I proposed it, anyone could report potential abuse (it’s all public record on the blockchain anyway), but there would be a community elected compliance/governance body that vets and validates the abuse, following clear written (community agreed) guidelines.
The Terra stablecoin stability fee (which was recently removed in a short-sighted move) from Anchor deposits and withdrawals could easily pay for this professional compliance/governance body, which should be comprised of respected individuals (not associated with TFL or Terra in any way) beyond reproach.
And as for how is this different from a bank? More transparent. 1000s of folds more cost and operationally effective. Yet keeping Anchor clean and out of trouble with the law, ensuring that it has a long-term future. While - and this big bonus is not to be underestimated - having a material way to fund the yield reserve, if a portion (not all, perhaps just the gains since date of original deposit) of abusers funds are redirected to the yield reserve. IMO the best way to address abusers would be that they earn 0% yield, that’s it. Their yield goes to the yield reserve fund.