Exactly. Neither the banking cartel nor the government will ever allow a currency they have no control over to rule the market. Anyone who thinks they cant crush the unregulated market is naive. Especially when they throw in the excuse "terrorist are using it to fund international terrorism." If they can use that excuse to shut down the unregulated online poker market, which was a laughable excuse saying terrorists were losing poker hands purposely to funnel money to other terrorists, how much more for an actual digital currency and currency transfer.
Most likely reason it hasn't been shut down is that crypto transaction records are a gold mine (lol) of information for the security/intel agencies. The proposed KYC stuff is just icing on the cake.