I believe that decentralized exchanges will flourish because of these new KYC laws and taxes. This flies in the face of why bitcoin was created in the first place. The government even wants a cut if you bought bitcoin at $500 and hold it for 5 years and then just purchase something with the appreciated earnings. Watch Monero fly in price as well. I realize that the government does need taxes to operate but it has become a huge hungry machine that is growing and provides less and less things that we really need. It has far usurped it's original needs and plans. Reaching into our lives much too deeply
I am not sure how will decentralized exchanges will be faring if the government will be demanding for them to hand their record of business or transactions otherwise get the threat of closure...all of these talks that they can be beyond the power of the government are just words. The government right now is exercising its power in the name of protecting the people from possible scams and abuse (and certainly there is a good basis on this) but sometimes they are doing it not to correct but to stifle the whole industry (this is not the firs time they are doing this). I have no problem with the government demanding their share of tax because that is just a part and parcel in doing business and everybody should cooperate and comply in exchange for recognition of the business.