Being forced to reveal your identity and your other details (address, passport, credit card verification) is never a good thing for an industry that was built on a coin that provided privacy and decentralisation.
It might be a way to avoid money laundering, but the real question is, how much of our privacy does the government need to invade for them to be able to catch criminals?
For the coin, this clearly does not bode well, but it is not the coins that introduce the KYC procedure, but the jurisdiction in which the given coin is based.
Money laundering is not always the case, but just control. The state and the legal system want to keep under control all individuals included in this system, this is the key to maintaining power - control over people.