Nothing, of course, except they might decide that doing so is illegal. The AOPP protocol wasn't designed to make every wallet undergo KYC at source though, but rather require that centralized exchanges attach your KYC to your withdrawal addresses by having you sign a message from it prior to withdrawal.
Well that's a relief. If it's only enforcing KYC through centralized exchanges, then you can switch to a P2P or DEX exchange for true privacy. We should stick with open source wallets and decentralized exchanges to avoid failling into the hands of the government. Regulations are getting strict, especially when Bitcoin's popularity is increasing at a fast pace. I've been doing a little research and found out a private alternative to the Lightning Network called "Ark". There isn't a working product (as far as I know), but the project is very promising. You might be able to "anonymize" your BTC with this off-chain scaling solution in a trustless manner. There are also trusless cross-chain atomic swaps that will eliminate the need for CEXs in the future. With development happening behind the scenes, it seems to me that not all hope is lost.
