Seems like only crypto to fiat will be regulated. Does this mean crypto to crypto exchange is free to operate? Or will they also require to be licensed by the government?
It applies to everything related to crypto, even platforms not touching fiat at all.
I'm pretty sure KYC will take place if everything needs to be regulated. Seems like anonymous exchange will no longer exist.
Unfortunately, yes. People need to think twice before signing up to an exchange or service thinking that they are exempt from KYC for ever, because that's not the case at all. We have had numerous cases where exchanges silently updated their terms and trapped their users with no choice but to verify in order to withdraw.
In the end, people didn't have any sort of anonymity even without KYC, so they don't lose anything. If you also take into consideration that people don't shy away from walking themselves through verification levels for the sake of getting a $10-$20 bonus, you know that it won't matter much in this case.
It will matter for a small percentage of those who are more aware of the risks of handing over their personal information to an entity they don't know, but they will stick to the more legitimate services in the space as result of that.
