KYC is not necessary for investment so, I don't think KYC is needed in order to prove identity or even participate in the AML.
But now, some of ICOs need to pass KYC to able invest on their project, actually I didnt like about this requirement that we need to upload our ID, passport, electric bill, selfie, etc. project that need to pass KYC mostly to prevent money laundering and terrorist activity but still we wont be anonymous again with KYC requirement.