the topic creator should not be quoting coinbase articles.. but instead the actual draft paper..

the 3 main things the draft ACTUALLY is concentrating on are these:
payment service providers(exchanges, mixers, custodians, 'professional financial advice services' shopping cart middlemen services)
and
ICO creators

and
stablecoin issuers (e-money tokens)

its not about person to person transactions using decentralised/bitcoin wallets. its not about person to merchant/retailers. its not about blockchain transactions.. its not about mining pools or asics or asic farm owners. its not about software developers

its about payment into regulated services like exchanges, financial advisers and payment service businesses. its about businesses or people creating new ICO(premine/airdrop/purchase of issued tokens)

as for having to get 'wallets' include KYC. this is not about normal cryptocurrencies or existing cryptocurrencies. its about what they refer to as e-money tokens which translates to stable coins

here is the classification of crypto asset service providers

Crypto-asset service provider authorised for the following crypto-asset services:

Crypto-asset service      Type of crypto-asset services                         Minimum capital requirements
providers
Class 1                         –reception and transmission of orders            EUR50k
                                     on behalf of third parties; and/or
                                   –providing advice on crypto-assets; and/or
                                   –execution of orders on behalf of third
                                     parties; and/or
                                   –placing of crypto-assets.

Class 2                         Crypto-asset service provider authorised        EUR125k
                                   for any crypto-asset services under class 1
                                   and:
                                   –custody and administration of crypto-assets
                                     on behalf of third parties

Class 3                        Crypto-asset service provider authorised for   EUR150k
                                  any crypto-asset services under class 2 and:
                                  –exchange of crypto-assets for fiat currency
                                    that is legal tender;
                                  –exchange of crypto-assets for other
                                    crypto-assets;
                                  –operation of a trading platform for crypto-assets.

as you can see it does NOT mention:
decentralised non-custody wallet developers
nor person-person private transactions
not person to merchant/retailer transactions

a retailer does not need to take KYC info for all transactions. but if its using a payment service to convert to fiat(EG bitppay) then bitpay will require to KYC of both the retailer and the customer