When I was starting to get involved in crypto-currency, one of its features that attracts me is the privacy it gives you. Now with all those KYC being required in exchanges and in ICOs and other platforms, some people are beginning to be hesitant in their activities in crypto.
From the point of view of governments, they can be understood. Taxation is impossible without identification of individuals when performing transactions with the crypto currency. However, this completely contradicts the principle of anonymity when working with crypto currency. For those who want to keep their anonymity out one - decentralized exchangers. I think that in any case they will be able to work by registering in offshore zones.
But the KYC regulations have been introduced (and are being introduced) with the excuse that it will prevent money laundering, not that it will enable taxation. That is why it should be restricted to transactions exceeding a certain amount (like 15.000 Dollars or whatever is legally aplicable), not applied to
every transaction. Or, if they want to do the KYC in order to enable taxation, they should openly state it so.