KYC onboarding for DeFi projects: navigating the gray areas?

Been thinking a lot about the push for KYC/AML in the decentralized finance space lately. It seems like a constant tug-of-war between the ethos of decentralization and the very real need to comply with traditional financial regulations, especially as institutions eye the space more closely. How are folks on here generally approaching this for projects that are trying to bridge the gap? Are you seeing more robust KYC solutions being integrated directly into dApps, or is it still largely left to the discretion of centralized exchanges or on/off-ramps? I'm particularly interested in how teams are managing the jurisdictional complexities – it feels like a minefield trying to satisfy regulators across different regions while maintaining a global user base. Any thoughts on solutions or best practices would be appreciated.