KYCs are not the problem here. The problem I see is where you are entrusting your information to. Because their are certain ICOs that will only fish out your information as it has more value for them rather than the token they are creating. KYCs are a requirement of some countries' government as it is their way of regulating or being in touch with their citizens. What I would normally do before trusting my personal information to other entities such as ICOs or even exchanges I will research on them if they have a good background.
Yah here where even I am worried about disclosing my documents. Its bit hard to predict as who is the real ICO here. Its like keeping 50 percent of believe blindly though we spend time in analyzing the details of ICOs like their project details, the team members' profiles, the service they are renting and the size of amount spent for their projects. But there is another possibility to have trust in. Like, if you are being in this forum for a long time and you are sure about a manager handling the bounty. I believe on a manager as he always takes charge of ICOs that he is very sure about. For such ICOs, yes KYC can be provided though its risk giving.