The part where you mention KYC will probly turn off some of the potential clients as many users of Bitcoin would like to remain anonymous. I know there are exchange sites out there who are still up and standing regardless if theres KYC or non. There are Bitcoin users out there who are paranoid when they hear those 3 letters.
If bitcoin wants to be more mainsteam the users have to come out of the shadows specialy when using credit cards. I see no reasone to to unvail the anonymity of bitcoin to bitcoin users, this is practicly part of the protocol. However when using fiat to buy it, it needs to complay with some regulations.