I do not understand the meaning of passing KYC. Buy fake documents is not a problem. Everyone knows that. In fact, even no one really checks for a fake. I see that there are no obvious signs and miss everything.
It is because their greed, they want to invest in a coin so badly that they are willing to do anything even if that means exposing themselves to great risks like identity theft they are not thinking of the future consequences of their actions. These guys might be making some sense here about the fake ID because we don't know what these governments are up to. Anyway it all depends on the type of questions asked in the form, we should be very careful about it