KYC is used for taxes. When you cash out your crypto, that is income and needs to be reported, so the government can afford $1,200 benefit claims for scammers.
why? lol why are crypto gains ever to be taxed? government wants a cut of everything these days or something? not a single thing u can earn for yourself that doesnt get fucking demolished by taxes and ravaged by people that didnt do anything to earn it. sounds like a fucking scam to me.
I would prefer a crypto industry that is not plagued with KYC. That would be ideal, but you would have to surmount the governments that formulate these types of regulations. Tyrants, despots, states, gods, whatever you want to call them, they have a goal and that is to keep power - to do that, an easy way is to control both the use and flow of money. And as Vod has commented, KYC protocols for sites do allow the governments some more influence in those fields. 
yes, which is complete bs, they dont deserve a cut of anything. which is why i say that all users should start boycotting kyc sites and take back their power from these money-hungry dogs