You can always sell your KYC coins on KYC exchange to have the proof of sale. Pay taxes on if aplicable and buy nonKYC bitcoin instead.

Bearmarkets are a good place to do it. Your coins are worth less in fiat terms so you might not need to pay any taxes (or less) and you probably buy your sats for cheaper when the price goes down.

Just make sure you buy non KYC if you worry about the govt comming for your bitcoin in the future.

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Yes I agree but there is usually limited amount of non KYC available on peer to peer exchanges at very high premiums. It would, however, be worth this price if there is a government crackdown