It can't be denied that most of us here still don't like giving KYCs to centralized exchanges; even I don't want it either. It's just that, due to the situation and opportunity, we still can't avoid submitting our KYC because we have something that needs to be released to an exchange that is under this regulation, or else we won't be able to release our money on their exchange site platform, right?
By opportunity I think you meant high liquidity, this simply can be solved with if majority value privacy and decides to move towards the decentralized exchanges, this will reduce the liquidity on them and increase more liquidity on the decentralized exchanges. There are also CEX that do not require KYC at first, you can simply make use of them but be rest assured that they will definitely come back one day to ask for full KYC and as such do not leave your coins on them.
Now, the question is: who really controls our KYCs? Is the exchange centralized, or has it passed the requirements so that they can operate legally under the government of a country where their business is located internationally? Isn't it clear that the government is really in control because they don't like the decentralized system?
Needless to ask, it is simple, before you can get the autonomy to operate legally you need to be regulated and how is that done. The government will need the data of its citizens using your platform. Look at the reports of users funds that are got freezed by government, almost all of them are traced to their centralized exchange account.