KYC is problem for user of those countries who have banned crypto currencies. Because user never want to be shared his personal detail with Govt and authorities.
Though legit ICOs do require documentation to identify if the customer is from a country that allows citizens buy crypto currencies, its bit hesitating to hand over the documents as have an experience in scam moments. Its 50 to 50. When promising projects do encourage investing into it with all documents needed, it urges us to go further ignoring the fear behind. For an example, i had to get into Eligma website to complete KYC to get Eligma tokens. Just went through hoping its a good project and yes certainly protection would be there for the documents i provided. Hence be pro-active and invest.