Why we need to do KYC compliance for bitcoin because its a decentralized currency and if we do KYC then what guarantee is our personal info never be leaked or hack. Now many investors hold bitcoins in their wallets and all never want to do KYC compliance because they don't wanna reveal How much bitcoin they are holding. so there is no need to do KYC for any private company.
This is exactly the reason why governments are not allowing it. Atleast for new coins, this should be done so that all may enjoy benefits of crypto.