Actually, most countries have implemented KYC on centralized exchanges, this is done to maintain the circulation of money in the crypto market, and can find out the owner of the account. If KYC is not enforced, then the state is concerned about money laundering in the crypto market. Apart from this, the exchange developer also needs to maintain the security of the exchange user in case of loss of access. The developer will detect the owner's face based on previous KYC.

Regarding Defi which does not require KYC on users, there is a possibility that anti-crypto countries will ban it. However, if the government only limits it based on site blocking, then it is still easy for everyone to use. The higher the government restrictions on certain access, the more thinkers will create applications to bypass these restrictions. The thinkers will continue to think about and develop applications to make it easier for internet users.
So I never worry about it, and crypto will continue to run normally. Nothing can stop crypto.