Not sure how can this be applied to crypto - since people just wont exchange money to fiat on online exchanges and just use wallets that dont require KYC and DEX and then just take their cash offline via localbitcoins
LocalBitcoins removed face to face exchange option, as well as they introduced KYC. Although some of the users disagree with our statement above, for the regulators a wallet will be regarded in the same way as a bank account - you need to verify yourself to open a bank account (you can open one only with ID).