what is there not to understand?!!!
you are using fiat, aren't you? and when you use fiat, you have to follow certain laws including this KYC/AML thing. for example if you try trading stocks with your fiat, they will ask you the same questions. even if you go to an online shop like Steam and try buying a game with your fiat they will ask your address,... for the same reasons.
so why are you surprised when they are asking the same questions when you try to use your fiat to trade bitcoin?
The problem starts when exchanges that don't use fiat like bittrex and poloniex are starting to implement similar requirements. To be honest i find it to be abusive bullying, while they're calling it "obeying the laws".
As for fiat, you never own it, you're only leasing it from the issuer (the government, central bank and so on). They can disable it, take it from you, control your purchases, because they own it.