But, isn't this a problem since KYC became a thing? What's new now? Bitstamp, Binance, Coinbase etc., always treated bitcoin as non-fungible and enforced these arbitrary rules against mixing. You're not affected if you don't use centralized exchanges at all.

And, to be honest, I find it unreasonable to do such thing; you have obfuscated your outputs, made your activity hard to trace, enhanced your privacy and you'll end up handing out all of your personal info to some corrupted companies which will then sell it to politicians, private companies, the dark net etc.? Doesn't make sense.