Having KYC is not bad since you have to provide some information about you, but some are eve requiring proof of bill that is in your name, how does even student can give such document for electric bill and they are still living with their parent.
Then some are even asking for passport and don't considered a national or government issued ID are you applying for immigration? Some project seems to be stupid if they even asking for police clearance with ID picture, looks like we are applying for loan.
No amount of KYC is good and the police clearance is INSANE. Not even banks ask for this info. Sounds like an excuse to just not pay people.
Sad thing is that, we cannot stop this KYC because some exchanges are now required by the government for this kind of information. Though I don't see any reason why do you need to fill up a KYC form for an airdrop, its quiet smell fishy if those airdrops asked for you to fill up the KYC form, be careful on this.
Yeah this is true that some exchanges are required by the government to do it IF they handle FIAT since many governments require a money changer license for that.