South Korea has established regulations that every Crypto trading account should have a complete KYC. In my opinion initial coin offerings should also have KYC for every investor to be regulation compliant. Thus, terror financing will reduce to a great extent through cryptocurrency.
KYC isnt really a bad thing,this will protect each users from the exchange if someone hacks the exchanges they can easily recover what has been stolen,In ICOs KYC will protect the ICOs managers from fraudulent activities from the users for example double entries,but in the other hand the only negative things i see with this KYC verification is you will not have any privacy,your identication card might be sold to others that might use it for identity thefts.