KYC is actually killing the nature of Crypto currency. After KYC we are in same situation like using Fiat.
I don't know what is the use of crypto currencies if everything will get track by Government agencies. Better we cashout and invest in stocks.
No, it is just going to split crypto into he the legal part and the illegal part. If joe bolggs wants to buy it with his CC then he KYCs with an exchange and gets it that way. There will always be ways to do it without KYC (dark web etc).
The fun will come when companies/shops start accepting BTC but only from tracked wallets. If you aint on the list then you can't spend it.