KYC isn't so much about Know Your Customer as it is 'Kontrol' Your Customer. As in, "Oh, now that we know who you are, here is what we'll allow you to do and not do."
Which is really silly. People always find ways (BTC, Nostr, etc.) to do what benefits them versus those who wish to control. It doesn't always happen quickly and there are always setbacks along the way. But eventually it does happen.