I don't understand why people are so hellbent to play by the arbitrary, subjective 'taint rules' that a small group of companies are trying to put on Bitcoin to make more money from large investors.
This is because there has been a lot of newcomers who joined bitcoin world not because of Bitcoin but because of the fiat profit they could have made. In other words they have no understanding of the technology, they don't care about financial sovereignty, they don't want decentralization, etc. they just want to make money. This group of people always bend the knee to any authority's demands. They don't care about KYC, they're probably already doing it elsewhere like in stock market and they don't see bitcoin market differently either.
What's counterintuitive though is that buying without KYC and without 'bending the knee' actually allows you to make more money. On one hand, you have no risk of someone 'closing your Bitcoin account' (exchange account), further you avoid pretty high withdrawal fees that cut into your profits (you actually start at a loss if buying on a CEX and withdrawing) and you avoid the temptation to play around with the trading features that CEXs usually put nicely presented up front, big, flashy and nicely looking. The reason they do this is the same reason you should avoid them; they make good money off you:
What Can Happen If You Want to Trade Cryptocurrencies, but You Don’t Know How?Good news is that not all bitcoiners are like that.
True, true! We're all always learning and should encourage newcomers to do the same.