KYC in itself isn't entirely a bad idea. It does prevent some fraud and adds another layer of security but still depends if the exchange is trustworthy enough. KYC could help retrieve coins sent to wrong address, on exchanges that implements KYC too could use these details to fix some issues. However, even though tax isn't also a bad thing (since it is necessary to have law enforcement and peace and order), I do also disagree on government's hot eyes on cryptocurrencies, especially now that they had seen its potential, it just looks like they just want to profit from these grounds.
I have to disagree.
KYC might not be entirely bad but it is entirely bad, if you know what I mean. We are here in the internet, in a cryptocurrency world where everyone came from different countries that have different identities, personalities, and so many more, that fact solidifies that KYC is not a good thing when it comes to privacy itself, it is like exchanges or anything that requires it are not that trustworthy for me, because look, they could do things they could even though without any KYC, yet they requires it.
And about the taxation in cryptocurrency, I am against it, because Governments should stay away and respect that cryptocurrency doesn't need one.