We are entering the era of hybrid exchanges. This is necessary since 99.999% of the world is still fiat based. However, even as we are starting to enter this phase, we can see how the end of KYC/AML will unfold.
As the world starts to acquire more cryptocurrency, the need to convert fiat is lessened. Up to this point, most of the industry acquired their tokens via purchase. This was the only way (other than mining which also required an investment).
Each day we are seeing a shift as more tokens are distributed and additional projects come online. SMTs might send this into warp speed if a number of websites embrace that technology.
Going from crypto-to-crypto is a much different process as compared to fiat being involved.