They say they want to do that - fine. Now, how to they propose enforcing that? If you complete KYC at a centralized exchange, then sure, it's easy to force you to complete KYC for your withdrawal addresses well. But what if you buy bitcoin peer to peer? How do they propose de-anonymizing mixed bitcoin being traded for cash to brand new addresses? And how do they plan to block transactions without forcing all miners to comply? I'm pretty sure US and Chinese miners aren't going to start blacklisting transactions because the EU tells them to.