The government forces the banks to do so. Coinbase is a bank, remember. Bitcoin Cash is just the base layer. The banks can build KYC and AML in layers on top of it if they want.
Heard of Concordia? It is a new blockchain project funded by one of the founders of one of Europes powerful commercial banks (Saxo Bank), Lars Seier. Concordia will have built-in KYC.
