All this KYC nonsense is based on the idea of the Four Horsemen of Infocalypse. Which are money launderers, drug lords, terrorists, and pedophiles. The idea is greatly debated by Julian Assange in his book Cypherpunks: Freedom and the Future of the Internet. Other great minds are also part of the book, such as Jacob Appelbaum (TOR developer), Andy Müller (a hacker which is a member of Chaos Computer Club (CCC)) and Jérémie Zimmermann (co-founder of La Quadrature du Net).

Governs are emphasizing that all these decisions are based on combating these four horsemen, but it's a lie. The problems determined by the horsemen of infocalypse can be mitigated with other ways, not with KYC. Besides, make sure to read also 1miau's topic Why KYC is extremely dangerous – and useless which is complementary to OP.