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.
Terror financing is just an alibi of the government to halt cryptocurrency because terrorist are wise and they know that although cyptocurrency is an anonymous transaction, it can still be trace. I don't agree in KYC for ICO because the documents that you submit to the ICO might fall in the wrong hand and could use it in illegal activities or sell your information in the dark market.