Anything decentralized like bitcoin core, electrum, etc. is not affected.
At the end of the day, the person will still need to use some centralized service to be able to spend bitcoin.
I'm not particularly surprised by these measures, this was something expected to happen sooner or later, just seeing that they've been asking for KYC for a long time, so what did people expect? did you expect governments to be in favor of anonymity? what would be the point of just requiring KYC on exchanges and leaving other services without any monitoring or control?
It's really unfortunate that people are slowly being forced into centralization despite bitcoin being decentralized in nature. It's true that the government seeks control in almost every way possible, hence, the central organizations and other financial or exchanger platform under the jurisdiction of the government is mandated to have KYC on their clients. This is their way to regulate if they can't manipulate crypto itself.
Here in our country, you really have to use a centralized exchanger in order to spend or withdraw your bitcoin and other coins. This comes with tax in order for them to profit, of course, and anonymity is already compromised. But this is the sad reality. Sooner or later, verification of identity would be required and not just optional which will defeat the purpose of bitcoin. There may be ways, but hopefully in the future it won't be limited.