If exchanges choose to use CipherTrace's implementation that would mean that the identities would be in the hands of only a few people ie.
Granted if people have to do KYC through an exchange, they've already willingly gave their information. This just adds a level of protection.
I wonder what will happen over time to DEXs
Okex is the first to take action on these Privacy coins by delisting them, now we have this bad news, I wonder will much more bad news coming for Privacy coins, some of them have been in existance for several years, but I am very confident that majority of these exchanges will prefer to keep these Privacy coins, they represent the essence of anonymity and about Dex they will continue to exist, as many traders prefer to trade on Dex.