The government is imposing the KYC on the exchange, you can enjoy using anonymous coin if you don't buy and sell it in an exchange as regulators can surely trace the origins given the history is available to them when the exchange is fully compliant. Exchange value their clients but they value their business more and they cannot afford to violate a mandate from the regulator that would risk their business future.
You seems to dont understand what opaque ledger provide you. When you buy opaque ledger coin and withdraw it to you wallet no one knows how much coins there is on that wallet or where they will go. No one even know if they are still there or not. Well no one beside you. So it does not matter if you KYC on exchange ( well it matters if you are afraid that exchange will abuse your KYC info).
But in general KYC matters for those that uses transparent ledger cryptocurrencies. Since their KYC identity gets linked to those coins that they withdraw from that exchange. And then everyone can see where those coins went. Forever. Even 20 years in future. Lets say you donate those coins to some political party that will be forbidden 20 years form now. You are toasted then!
My point is, if you sell a privacy coin in an exchange, the exchange will know how many and what coins you are selling, and if you are in question for whatever suspicious illegal activities you are doing, your transaction history can be provided to the regulator so they can conduct an investigation.
Of course investigators are smart, though they cannot track the transaction of the privacy coin, but if you cannot justify that transaction that might put your in danger.
The government will try to make anonymous coins are marginal. At the moment there is the possibility of sharing without disclosing and I think in the future this opportunity will continue.
Whilst Monero is king, I honestly believe Spectrecoin (XSPEC) has the best tech for true anonymity and would highly recommend you DYOR on it
Of Course, Monero is King of the Privacy coin. I agree with you I choose Spectrecoin The team behind Spectrecoin is now transparent allowing for increased accountability, and increased potential to meet exchange requirements. Release of Proof-of-Anonymous-Stealth (PoAS) algorithm that allows you to stake your private balance. A first for a Trustless Proof-of-Stake coin. Say goodbye to the richlist!
A promising project, to be observed.