If a certain frontend or app wants to implement KYC, it technically can, and there are limited use cases where KYC could actually be useful... I already thought of one, and will post about it in due time.
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An app can implement it, true. That is the level it would have to take place at.
That's absolutely how it should be, never on the base layer. Changing this to base layer would warrant a rightful exodus from the blockchain.