If I buy XMR on kraken and some time later send to my own wallet who can prove that the wallet I sent it to belongs to me or when I spend it that it was in that wallet at one time? Timing attacks at most, right? Or is there more?
Discussion
KYC is the illicit activity. It exists distinct from the distributed ledger.
All KYC purchases and sales are recorded forever and shared with the government.
If you have performed a KYC purchase without a KYC sale, you will be assumed to hold that asset.
All of the burden to prove otherwise will be put on you, if they so will it.
Best to not have the KYC purchase record in the first place. That is improved privacy from the get go.