KYC on non-custodial wallets and the travel rule

Been thinking a lot about the push for KYC on non-custodial wallets, especially with the 'Travel Rule' requirements starting to trickle down. Seems like a fundamental conflict with the original ethos of crypto. How are folks in the space realistically seeing this being implemented without creating a massive compliance overhead for smaller operations, or worse, pushing activity further into dark pools? The tech solutions for linking identity to self-custodied funds without full centralisation seem clunky at best, and a privacy nightmare at worst. And what about the different jurisdictional interpretations? Feels like a regulatory minefield waiting to explode, particularly for exchanges and OTC desks trying to stay on the right side of things without alienating their user base.