Isn't his reputation in the tech industry already tarnished due to his political beliefs and activities? Asking for KYC won't ruin someone's reputation in the cryptocurrency space, at least not in 2019, but it definitely leaves a sour taste in the mouth, when they could have relocated to a friendlier jurisdiction.
i don't think there will ever be any problems with asking for KYC in cryptocurrency space. we all know and understand the centralized services are subjected to regulations.
the reputation is ruined when they start claiming to be decentralized (like decentralized exchanges that are centralized, eg. Binance DEX) or talk about privacy (like this case) and then their actions are the exact opposite of their claims.