My idea would be to create a bank to safely store people's bitcoin and other crypto for people who just want to hold for a lot of time.
They would register with the passport or ID, it would cost 100 GBP + 1% to deposit and verify people's identities.
Try to explain how the concept of the bank you meant about the storage of bitcoin and other crypto to be far safer in the intersection for a long time. Besides requiring verified identity, we also need costs to be incurred and it is not at all attractive.
Then, to withdraw, it would take 3 months, they would have to show the passport and have a meeting via zoom once a month during 3 months stating they would want to withdraw, it would cost 300 USD plus 1% of the value.
It would compensate for people who want to hold for a lot of time without having security concerns.
Similarly, KYC and some people really avoid about personal identity because people want to look more anonymous. The way you mean is very complicated and I'm sure people will choose a path that is easier to use a special wallet that does not require KYC. In my opinion Bitcoin cannot be interested in the bank but we need a storage wallet so that the assets are safer and most importantly we don't need to store bitcoin to third parties because there are many ways to store safer.