I would encourage people, as I have always done, do trade exclusively peer to peer and to never complete KYC anywhere, so there are no third parties which can track all your bitcoin and share that information with anyone they like.
Yeah its good to do peer to peer transaction if there's a lot of people using crypto on where are but if there's few people using it then we don't have a choice but to engage with those Kyc compliant platforms. Its hard situation to get track but we can't do anything if the only option we have is to engage with those KYC platforms.
Everything I've seen come out of the EU in relation to bitcoin has been just as bad/stupid/misguided/idiotic as what our government in the US spits out. This kind of mass surveillance of bitcoin will only spread if we don't fight to put a stop to it.
Just like they make it a normal habit to spit some bad words against bitcoin and we can't do anything with those old dudes believing some negative about its existence, but for sure they will eat all the words they spit against it once bitcoin will get massive adaption and for sure this guys will change their minds especially they see its real potential.