When ICO's collect your KYC docs, is that it? What do they do with them, just hold on to them for record keeping or are they required to process them some how?
In theory yes that is all what they will do with them and maybe if they received a court order to revel those documents they will allow authorities to see them, however I refuse to let myself be ordered around by some icos, if the ico is legit you may decide to trust in them and send them your documents but if the ico looks scammy it will be a terrible mistake to send them anything.