That is not true.The beauty of crypto wallets is that you still don't have to provide any KYC and can hide behind all types of things to avoid to be traced. Only when you need the crypto exchanged to FIAT it will be needed to provide KYC - most often you want to apply for a business account in that case.
Based on a fbi report they were already in 2011 able to trace owners of 98% of all transaction done via bitcoin.
The trace doesn't need to be done via KYC.Its done somewhere else where noone thinks about it. or even thinks to hide.