As far as I know, the FATF decision states that persons who send or receive cryptocurrencies worth more than one thousand dollars must be tested by KYC, and if the transaction amount is more than $ 15,000, then such a transaction is reported to the relevant government agencies. I do not see that these rules are too strict.
It may not be too tight for people who have low assets, but for those who have assets of more than $1000, they must show their privacy with KYC. I myself am not too worried about the regulations stipulated, because my country is not a member of the FATF and not all countries in the world are members. Maybe you can check your country through the official FATF website
https://www.fatf-gafi.org/countries/#FATF