So this is really happening now? According to my prediction, all services that have government intervention will slowly become a centralized system.
For now, only a handful of law-friendly countries allow users to spend their crypto directly, the rest still rely on centralized exchanges (where KYC is a mandatory requirement) as they need to exchange fiat instantly in order to spend their crypto. I don't think most of the binance users will really abandon it as far as the assumption that KYC requests are common for them.
I share your thoughts on this. That Government has so much power to regulate and implement rules and laws in their favor. What they want to achieve is to ultimately identy and tax everyone, this is not democracy from my eyes. The
obvious agenda is to own and centralized everything as usual. We can't dip in their pot, they gave themselves the right to dip in ours.