I'm okay with KYC on some cases, when it's a trusted company with publicly known owners. I'm also okay with (some) anonymous services with anonymous owners. The problems start when anonymous owners demand KYC data, and when they freeze funds, I can only guess what's going to happen to it.
I suppose there would need to be a supreme authority to oversee everything and further handle the entire cases. This is why we end up with exchanges like FF, which operate under vaguely defined rules, taking funds from their clients without permission or proper oversight.
None of the exchanges has a license to judge the legality of the origin of someone's money. It's simply not in the description of their business.