It is possible to buy a drink or a book with cryptocurrency. A law that requires the book or drink seller to KYC the buyer would make this difficult without putting the buyer at risk.

Of course, most sellers of drinks and books don't accept cryptocurrency. Which is why KYC needs to be removed from applying to credit cards rather than being extended to cryptocurrency.

> It does, however, help the rich avoid taxes and launder money.

Which is the thing laws can have no effect on, because they can't actually change how cryptocurrency works. The laws an exchange in the US is subject to don't apply to one in Venezuela or Russia. If you can exchange a million dollars worth of Bitcoin for dollars or gold bars anywhere in the world then it will be worth it for anyone dealing in large sums to go there when they want to cash out. That's already happened. It's the consequence of its existence and you can't put the genie back in the bottle.

All the laws do is invade the privacy of law-abiding people and put vulnerable populations at risk. Criminals don't follow laws.