I guess it is a government requirement to oblige big exchanges to have KYC. I don't think KYC is a bad thing, unless you plan to use your money on evil things. Also, in order to achieve mass adoption, regulation is a must, and KYC is one of the stages to achieve it.
Completely true. KYC keeps many scammers away, it's not killing cryptocurrency market, on the contrary it keeps away scammers and spammers. My take is that if you're not willing to share your information with us, you have something to hide... If you have something to hide in economic matters you can't be trusted.