What happens if you don't do KYC?

Can you elaborate on the potential consequences of not completing Know Your Customer (KYC) procedures in the cryptocurrency and finance industry? As a responsible practitioner, I'm curious about the implications for individuals and organizations that choose to forgo this critical step. Is it simply a matter of missing out on certain services or transactions, or are there more severe legal and financial risks involved? I'm particularly interested in understanding how non-compliance with KYC requirements might impact access to financial services, regulatory standing, and potential legal liabilities.