Why is KYC Needed in the Crypto Industry?

Hmm, let me explain my view on this point with an example.

Let's suppose that you bought a car for $10k from somebody else. But along the way you learn that it was stolen, something you didn't know from the beginning.

At some point, the rightful owner discover that his car is in your possesion. You may have bought it also, but it is still in its possession as long as he has the legal documents.

Most likely he will demand to take it back. If he possess the necessary documents, he will succeed by imposing the law.

The result will be to lose your money, and even the car.

Now, let's take a look at the car in our example as a cryptocurrency.

This incident could have been prevented by simply following KYC verification.

Is KYC/AML the Solution to Prevent Fraud?

I think the views will be conflicting. Many of you probably are not fan of KYC verification. But if that means that with this procedure the cryptoccurency industry can prevent frauds and illegal activities?