So it affects payment processors like GoCoin and BitPay?  It means more work short term making sure they are up to date with regulations but in the long run more business for those companies since individual merchants will want to let them deal with the KYC laws.  It seems to me like it affects merchant to Bitcoin processors more than business to business.

If BitPay has to know it's customers.. which are merchants.. that's not a bad idea.  If it's everyday consumers, that's bad. I still don't feel a Bitcoin killer but very bad.

Does it affect customer to cryptocurrency processing solution?  Maybe customers will have to have Bitcoin addresses linked to known identities.. which would be bad but cryptocurrency killer?  I don't think so.  And when sending person to person transactions, this does not apply, which is one place where cryptocurrency is particularly valuable.

Was a bad idea to send a letter asking that question though, remember, it's easier to ask forgiveness than it is to get permission.