crypto had to bend down to the rules of FIAT
Don't conflate all of crypto with these centralized scammy exchanges. Bitcoin hasn't bowed down to anyone - it is still just as decentralized and censorship resistant as it ever was. It is only the centralized exchanges which have sold out the principles of bitcoin and sold out their customers, enforcing these ridiculous KYC demands and deciding what their customers can and cannot spend their bitcoin on.
If you don't like these rules and regulations (and you absolutely shouldn't), then stop using the exchanges which enforce them. If everybody stopped giving their business to these scammy exchanges, then this kind of behavior would rapidly cease. It is entirely possible to buy, sell, trade, spend, and use bitcoin without touching a single on of these centralized exchanges or giving away your KYC documents to a single service.