I believe that only real solution for KYC is to use KYC companies as intermediates which handles the KYC process and are interested in keeping your data safe because they want their reputation to be as good as possible.
The ICO team how little interest in keeping the data safe.
Besides interest, no one really knows whether the ICOs even have the manpower or the technical infrastructure or capabilities to keep your data safe. Partnering with such companies would also mean that the ICO values its customers' privacy as well, which would be a pretty good indicator in terms of how much an ICO is to be trusted.