The government has putting a lot of pressure, everything that involves crypto in general including LBC. And to be fair, there are a lot of exchange platforms who succumbs before LBC does. And in the next coming years, authorities will be more aggressive and will push for KYC implementation.
I don't think it will give negativity though, well it depends on how you look at it, lots of pros and cons. However, if this is one way to really protect us traders then it will be the best solution, win-win for us.
The reason for which government is pushing for kyc from these exchanges is already showing, it is just a way for them to be able to regulate the cryptocurrency market and not because they want any form of protection for us. Since, cryptocurrency has its anonymous nature that makes it difficult for transactions to be visible to them, they already know that the easiest way would be for them to go through these exchanges since virtually everyone must transaction on the exchanges.
Therefore, kyc become the only tool for them to identify those that are using cryptocurrency so that they can be tax and I read that majority of these government now are beginning to draft some policy on who crypto currency tax covers and whom it does not.