KYC was never about crime prevention. Nothing the government does is about crime prevention. Why would they want to make it harder for themselves to steal our money?
If government was interested in preventing crime they'd secure their borders, build more jails, and properly enforce the laws already in place instead of releasing repeat offenders back on the streets.
New laws only ever make it more difficult, and expensive, for law-abiding citizens. Criminals are already breaking the law, its kind of their defining feature, so what do they care about new ones?
In countries where they've introduced gun controls and buy back schemes, you think the crims and gangs handed their guns in?
And why is surveillance bad? I've nothing to hide, so why should I worry?
Well, more Jews got killed in the Netherlands than France when the Nazis took over, and thats because the Dutch kept better records so the Nazis coukd see where all the Jews lived and rounded them up.
In France today addresses of Bitcoin owners were stolen by someone in the tax office and sold to criminals, who are now invading homes and demanding all the Bitcoin.
Government records will always be used for evil at some point.