After banning BTC ATM's early last year, the regulators are continuing to put pressure on exchanges.
They require exchanges to be registered to operate, which probably means KYC rules will be enforced.
The problem with the KFC is giving out info to some web based 3rd party who may or may not be secure.
Many exchanges have now moved to use Digital ID, the ID system run through the post office.
Like it or not regulators are still assuming that BTC and other crypto is to be integrated & controlled within the existing financial systems. Not the original intent, and not the likely out come given the strong growth in crypto adoption.
The only reasons to register with an exchange are to convert 'money' from BTC etc back into the counterfeit fiat system.
Once merchants start to accept crypto, and more & more apps are becoming available for them to do so, customers will just pay BTC2BTC or Alt2BTC etc.
And Binance, based in Malta is a great exchange without KYC and they accept visa currently for those that want to buy crypto.
The fake fiat system is at an end, more regulation will simply hasten it's demise, as BTC goes underground or offshore.
The nett result is the end of Aussie exchanges.
Time will tell
https://coingape.com/australia-top-regulators-registering-246-bitcoin-exchange/