As we all know that one thing that might hinder the acceptance of the bitcoin system for the government is the hidden identity of the members. Local exchange should do intensified KYC so as to avoid the system of cryptocurrency being abused by other members as well like money laundering, funding of terrorist groups and others as well. Some of the country had done this things already and the question is would favor to do KYC on your local exchange?
My country has not yet introduced rules on the taxation of crypto-currencies. Therefore, while I have nothing to fear. However, if the KYC is inspected on the local exchange, everything will depend on the rigidity of the tax rules. If the tax rate is acceptable, then it will be possible to trade on the local exchange, and if it is high, it will be better to do it on foreign stock exchanges.