KYC faced the real security issues. Someone can steal your data by hacking the platform and use it for criminal purpose. But in other hand, crypto world still finding the best ways how to protect crypto transaction form money laundery, human trafficking and drugs transaction.
I think, its a big responsibelity to keep KYC data safe. If not, crypto will had bad ending.
There are many projects out there that can prove identity such as The Key or Civic. The problem is that the ICOs are not managing this issue correctly and that makes them loose prospective investors. Like myself.