Sooooo much horseshit.  Bitcoin already protects against identity theft better than any KYC-compliant system ever will.  How is every financial entity you do business with having a copy of your personal details (usually stored insecurely and ready for the thieving by any criminal with half a brain) going to protect against identity theft?  KYC is the fucking cause of a significant proportion of identity theft.  Some of it is still caused by people not shredding their financially sensitive documents before throwing them out.  Some of it is people falling for phishing scams, or poor online security with keyloggers and the like.  But KYC undeniably does more harm than good in terms of your personal details being stored and transmitted without your knowledge or consent.  You lose any and all control over your own information.

No personal details tied to your transaction?  No identity theft.  They can fork a little KYC-compliant altcoin if they like, I wouldn't even touch it to dump it (and would suggest that none of you do either if you value your information being kept secure).  Good luck getting anyone to use that shit.