KYC is all well and good, except when it starts getting traded around for goods and services, unless you're going to KYC there too, it just turns into a muddy pool. Just like finding someone with a $20 bill that has trace amounts of cocaine on it doesn't mean you know anything about whoever happened to have that cocaine, no matter how many times the bill perhaps was scanned at a bank or ATM. Chainalysis seems to depend on people only ever converting to and from fiat, or perhaps, illicit goods. If everyone starts buying their groceries and paying bills with Bitcoin directly, all that KYC will be of less and less value.