When you buy your bitcoin under KYC laws, the company you're buying from gets a copy of all your personal info.

Then it passes a copy to many departments in the government. The government will try to extract as much info as possible about you through the company that is selling you your bitcoin.

If the company doesn't come clean and provide whatever they know or don't know about you, they will be in deep trouble. In fact, every KYC company starts its business ready to snitch on you and make as much as possible using you and your information.

You have to be a real moron to submit to KYC restrictions.