My point is that privacy doesn't need to do KYC because there is no possibility of the customer evading regulators. Assuming that privacy answers subpoenas, they would be able to give the government detailed transaction info and a bank account which would identify the customer. KYC at this level of abstraction doesn't seem to solve any kind of legal problem. I'm glad to be educated by an expert, though.

Edit: A sibling explains a good liability reason for this, which makes sense but would not imply any legal reason.