At the end of the day, I am still going to look for ways to cover my footprints and thanks to Open Source and Decentralization, we are at that point where we have ways around mostly everything.
At the moment, this legislation will have no direct impact on me since I do not use centralized exchanges and I do not live in Europe. But as I was just saying in my last post, this kind of thinking and this kind of legislation will absolutely spread around the world. There are similar pieces of legislation making their way through the various processes in the US and in Canada, and I'm sure plenty more elsewhere I am unaware of.
I will never stop doing the things I do to protect my privacy and prevent the government from including me in all their mass surveillance programs, not just when it comes to bitcoin but in all aspects of life. But there is no doubt that such legislation will make it more difficult. It will be more difficult for me to spend my bitcoin with any merchant who does not accept it directly (i.e. via a payment processor). Even merchants which do accept it directly may make things more difficult if they in turn start getting harassed by exchanges to show where their coins came from.
Obviously I'm hoping for the opposite - that more people wake up the draconian suppression being forced on them and the volume of peer to peer trading massively increases - but given how little people seem to value their privacy or freedom, I'm not holding my breath.