Doesn't have to be associated to your identity, also you could coin-join your spends..
Discussion
Its similar to KYC'd gold..
This is where Bitcoin quickly starts getting overly technical and a bit shady, and everyone not wanting to live their life in a remote mountain castle in a green body-stocking heads for the exit.
How is gold any better?
It's an element you can buy with cash. That makes the entire transaction highly fungible. Fungibility is the basis for anonymity.