If peoples who have bitcoins and cryptocurrencies accept the KYC then it will mean that governments will have won.
I don't think so. Bitcoin is a decentralized crypto currency. Therefore, government can not regulate it properly. Rather government can ensure the smooth transactions through bitcoin for development of economy. Government can create policies, guidelines and instructions only, bitcoin will run in its own pace and own way due to its decentralized nature. Point to focus here is more innovation and coding system development for bitcoin.