The problem with KYC/AML is security and lack of privacy. Imagine Bitcoin emerged in this way where all the earliest participants had their names (and faces) in a database somewhere? How much would that database be worth now to hackers?
I'm mostly concerned about the security aspects. KYC I have no real problem with philosophically if it could be done in a completely secure and private way but if it's going to save all of this into a centralized database then the security is now centralized when we are talking DPOS.
Tezos is a DPOS style chain. So once the identities of the stakeholders are known it turns Tezos into nothing more than a decentralized corporation of a sort only without the protection of banks. So you're submitting for the KYC/AML banks require but you don't get the same level of protection you get from stocks.
If you lose your private keys, if you get hacked, if you get extorted, where you gonna go? What is the Tezos Foundation going to do about it?