I’ve never heard of KYC liquid. Liquid transactions are confidential. No one can see amounts being sent on liquid. You also can’t look at addresses and see how much is on the address. What’s the point of coin control if you can’t see the coins? The only coins you can see are your own.
Discussion
KYC : if you bought liquid bitcoin on a KYC exchange (or with a payment method that requires KYC on an exchange).
You can make a transaction graph since the addresses are not confidential, only the amounts are confidential :
https://blockstream.info/liquid/address/ex1qqfugcurkz6hcvz7lnqtfpfga0zld5fnqle50sq
If you buy at a merchant store and give your name or address, that information can be used, in combination with the transaction graph, to make assumptions as to other addresses that would be linked to you. Not the amounts but the destination of funds.
If you live under tiranny like in North Korea, Iran, Canada, the US, Australia, China, Russia, etc, that can be dangerous.
I like liquid and use it. But I believe coin control would improve the privacy guarantees it offers.
I still don’t see what the problem is. Does coin control prevent someone from making a transaction graph?
Also, the receiving address is the not sending address. So if I sent you liquid to an address and you spent those liquid the next day, I wouldn’t know because the address that sends that liquid changes.