I shake my head if you of all the people in the forum support the whitelisting and the imposing of KYC on self custodied wallets.
I think he meant to say that regulators don't need to introduce any new rules since they can just force DEX or any other platform to implement KYC or whitelisting. If they are popular and the owner is known, for example, I guess some threats could work and potentially force them to do what the government wanted. I believe DEX and self-custody wallet is not the same in this regard, I doubt they can force people to KYC to use Electrum for example. CMIIW.