KYC is becoming more and more required in crypto now, and there is a possibility that within the next 2 years crypto wont be available as it is now without KYC and even harder regulations, i do so much hope that it don't come to that, it will kill the basic idea of crypto.
It is definitely a problem right now and as you say it is probably going to become an even bigger problem in the future but that is not going to kill the idea behind cryptocurrencies, what we need is more people to accept cryptocurrencies directly as a payment and that only is going to happen with more adoption, but once that happens those regulations are going to become meaningless because you will be able to use your coins directly to buy anything that you want without having to go through KYC.
One of the major problems today in using cryptocurrency authentication and reliability of the data, crypto has money involve that you must to consider the validation of the users. KYC is one of the most significant needs to make sure both parties are safe from being a scam. To make sure the security of both users, they must need to submit validated information to make the transaction happen, but commonly, they hire a middleman to handle the transaction, but there's an additional payment for this kind of action.