Definitely, but there is still a huge demand for KYC-free services. You can tell as much by the way Binance operates: They are willing to segregate their markets rather than go fully compliant. It's also basically a given that a host of countries won't be complying with the FATF travel rule, leaving the door open to non-compliant exchanges.
And that's where things get interesting. Are the Coinbases and Geminis and Bitpays of the world going to blacklist outputs from exchanges like Binance? Bitmex? Smaller altcoin and derivatives exchanges?
If what
coindesk reports is true, Binance is considering on using CipherTrace software to implement FATF's travel rule. Perhaps they'll use it for Binance.us customers and some other exchanges will follow, and we'll see emergence of two non-interacting Bitcoin currencies in circulation.