Unfortunately, it looks like that's the future for crypto, period.. Their argument is..

How do they know who you are? You can be using the currency for terrorism, money laundering, etc. More and more exchanges are adopting KYC & AML regulations, and more states are making it necessary. To the point where it defeats the purpose of cryptocurrency's original intent lol.

https://cointelegraph.com/news/what-crypto-exchanges-do-to-comply-with-kyc-aml-and-cft-regulations

"Part of the United States Department of Treasury, hinted that AML compliance will be fundamental to the stability of crypto exchanges in the coming years: 'We will hold accountable foreign-located money transmitters, including virtual currency exchangers, that do business in the United States when they willfully violate US AML laws.'"

"Yaya Fanusie, the director of analysis for the U.S. Foundation for Defense of Democracies Center (FDD), earlier in September 2018, told the U.S. Congress that terrorist organizations aren't using cryptocurrency as a funding vehicle. However, the U.S. House of Representatives, on Sept. 26, passed a bill that would establish a task force to fight the use of cryptocurrencies by terrorist groups."