KYC was never supposed to be part of #bitcoin.

"The traditional banking model achieves a level of privacy by

limiting access to information to the parties involved and the

trusted third party. The necessity to announce all transactions

publicly precludes this method, but privacy can still be maintained

by breaking the flow of information in another place: by keeping

public keys anonymous. The public can see that someone is

sending an amount to someone else, but without information

linking the transaction to anyone. This is similar to the level of

information released by stock exchanges, where the time and size

of individual trades, the "tape", is made public, but without telling

who the parties were. As an additional firewall, a new key pair

should be used for each transaction to keep them from being

linked to a common owner. Some linking is still unavoidable with

multi-input transactions, which necessarily reveal that their inputs

were owned by the same owner. The risk is that if the owner of a

key is revealed, linking could reveal other transactions that

belonged to the same owner." — Satoshi Nakomoto