impact of EU KYC rules -long term

Since the regulations force businesses in EU to obtain kyc for transactions above 1000 Euros, it will kill the real world use cases of crypto .

The KYC information could easily leak and then the wallet used for the transaction becomes linked to a user identity for everyone to see .

Effectively this makes the user’s balance and transactions public. This will be a huge privacy issue for all public chains as surveillance becomes easy for anyone to do . Additionally could cause safety concerns for the user too .

In real world terms , this is equivalent to a bank publishing your account statement whenever you make a purchase will your details and the recipient / merchant details.

What are your thoughts on this ?