Well, this is possible to happen because most of the nations are now creating and improving their regulations policies to ensure that Bitcoin currency will not be use in illegal activities which is really very effective. KYC alone although a difficult task but its proven effective in which people background can now be identified. I believed this is the reason too on why the demand of Bitcoin and the crypro currency is reducing because some of it are formerly owns by the illegal people.
Your reasoning is not entirely true. The KYC test is purely a preventative measure. She does not fight crime directly. Commands ICO, exchanges and exchangers can not determine who the criminal is and who is not. Simply gather information about persons trading crypto currency. When something happens in the future, law enforcement agencies will be able to use this information in future to reach out to criminals. How often does this happen? No. Therefore, this verification of KYC virtually does not solve anything. At the same time, it is actually a continuous control over financial activities of citizens. Checking KYC does more harm to the rights of citizens than helping to fight crime.