There's no point in using bitcoin for any illicit activities when there are privacy-focused coins like Monero, Zcash and a host of other, less-known projects that have opaque chains.
KYC is a waste of time and introduces lots of risks for consumers as their data is hackable. Just look at waht happened to Equifax, but of course the gov. doesn't really give a shit about the consumer, they just want to be in charge of everything.