The level of delusion amongst users of bitcointalk is concerning, I have been following a few threads about bitcoin price and only 2 or 3 commenter's have the right vision. You see we are at war guys, the guberments have gone to all exchanges and said "yo, we wrote this legislation to allow you to charge for data, but in order for you to get paid you must give us accurate data". So they have all incorrectly applied KYC believing we purchase something from the exchanges them selves, when the reality is we allow the exchanges to take a fee from our trades in order to cover their running costs, it is basically a donation in the eyes of the law, and KYC does not apply because we purchase from other users of the exchange and not the actual exchange.
This being said, how do we know we can trust the exchanges with our data, especially where guberment are concerned. Lets look at the implications of ID sharing with exchange's who recognise guberment terrorists as an authority.
If you send an exchange your ID...
* And have ever sent coins to a darknet market or received from 1 or even a mixer, the authorities are literally waiting
for you to hand over your ID so the exchange can inform on you.
* Wish to travel, due to legislation saying you can not travel with >10k you have likely been added to a list to be searched for bitcoin wallet hardware at customs, if not an interrogation.
* Will find that tax avoidance becomes problematic.
Now what if the exchange / verification provider gets hacked or compromised, your ID and all your personal info that allows you (or anybody else pretending to be you) to get credit. Easily steal your identity, easily destroy your credit file and stop you from getting credit.
In conclusion in order to buy bitcoin or even exchange bitcoin to alts you have to surrender your privacy and potentially open your self up to questioning and being treated like a criminal, and the majority of users over there seem to think we are going to roll over and accept these risks, where there is little to no chance of that happening.
I'm sorry but the simple fact of the matter is as long as the exchanges are incorrectly applying KYC bitcoin will continue to fall, Nobody with any brains will want to purchase anything that comes with the complete loss of privacy that bitcoin currently does.
If you have any other implications i might have missed please do add them in the comments.