I have nothing against about KYC or AML government policy. But of course, it is better to be anonymous wherein no one can track your money transactions, and no one can see how much money you got. But then, I understand why the government has implemented these regulations because they want to avoid money laundering from illegal activities. But basically, KYC is against the anonymity features of cryptocurrency.
This is where questions arise. If the government's aim is to prevent money laundering and terrorist financing, then they should go after the big whales. I mean those who trade more than $1,000 worth of coins everyday. On the other hand, they are going after the small fish, who use exchanges to convert their $10 or $15 worth of tokens that they received from bounty campaigns and airdrops to beer money.
Earlier, when Cryptopia was active, they had three tiers of verification. ID details were required only of you wanted to trade more than $1,000 worth of crypto. But now the government regulations make KYC mandatory for anyone who register to these exchanges. And it is neither going to serve its purpose nor going to make the market more transparent.