I totally agree with you. I see it as a temporary necessary evil until there is greater adoption.

But what happens then, will they one day outlaw ATMs.

I mean, there are no KYC rules for buying/selling gold as far as I know. Maybe one day when it becomes easier to buy and sell coins, they will have to abandon KYC for everyone except the people who are already doing it for fiat (big banks) or say anything over 10,000 USD (amount of currency you can normally cross a border with without declaring it).