The foundations and the major aim of crypto currency is privacy and taking this from it makes us go back to where we are coming from. Regulations which tools is KYC is against some paragraph I have read in bitcoin's white paper. It is internet transactions without third party involvement and brings regulations into cryptocurrency means the bankers and elites that create the current situation that the world financial system is facing now will still be in control.
Privacy is orignal objective of bitcoin and crypto currency, but real life can not be perfect like what Satoshi Nakamoto imagined and most of us expected. Goverments globally will step in and control, regulate market, this is what we can not avoid.