There is a fundamental difference of views between those building crypto products and those regulating them. Many of the most important crypto products (such as Bitcoin) were designed to be censorship resistant because the developers think that free-exchange is a human right. Regulators have a different opinion, they believe that the state (and most particularly the United States of America) should control all exchange. States use KYC and AML regulations to achieve this.
It is well understood that KYC/AML helps keep poor people and poor nations poor. This issue is discussed in depth this article which contains the germ of solution that could bring crypto and regulators closer together. There is a possibility that products like Facebook/Libra could allow users to establish identities that could be used for KYC and AML purposes.
CryptoStar lists 9 businesses specialising in AML/KYC.