It's true that all financial institutions are subject to KYC and AML laws. However, if you've ever used a crypto exchange versus a bank, or even just a prepaid debit card, you'll immediately see a massive difference in the application of those laws in terms of what you have to supply and how often.

It's not the crypto exchanges pushing for that - they actively work against it as it's a major expense as well as costing them customers.

Aside from exchanges, consider: cash itself is not targeted by these laws, which is crypto's closest existing analog. Do you need to submit KYC and AML documents to pull cash from your physical wallet and pay someone? Yet the push is for that level of involvement in your crypto wallets.

Finally, the SEC's actions for example are very clear: an obvious scammer like FTX gets a tick of approval and ends up reaming customers for billions. Whereas long-stable contributors such as LBRY or Ripple, get bogged down with heavy-handed enforcement. There are more examples.

HSBC was legally found to be actively engaged in facilitating criminal gangs, money-laundering etc. They paid a fine. You think a crypto exchange found to be doing those things would pay a fine? No, the executives would be jailed.

There's a big difference in application, across the board.