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 actually has a point as well because we can find out who participated in ICO which was launched otherwise it will make usage of ICO to increase the profit of irresponsible person. but there is a downside as well, from our KYC privacy is disrupted because of the identity we have in the hands of those ICO makers.