Not to mention simply acquiring them also poses other privacy risks.

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Exactly… 🤷‍♂️

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There are very few places to exchange them without KYC, especially if you need any actual liquidity.

Monero is delisted or unavailable on most KYC exchanges. Meaning you're likely going to get it no-KYC p2p or through a swap service (Bisq, Retoswap, Robosats, XMRBazaar, Trocador, etc).

But either way the KYC problem isn't unique to Monero and doesn't change it's on-chain privacy - they would know you bought X amount of Monero. Not necessarily what happened to it after withdrawn.