KYC is stands for "Know Your Customer" and i think this is a system that identifies the true identity of a participants. And this KYC is important in order to validate cheaters and those scammers. But sometimes it can be used also by those scammers also by pretending to have a n ICO and will ask your information for their own benefit like using your information for bad intention and this is the disadvantage of KYC system implemented.
Yes I agree with you. KYC is good because you can identify who is your customer in that point we can avoid scammers, but the problem is some scammers use those information to scam others by using those identification.
KYC is important because the government can regulate crypto currency and earn through taxes if all people in one specific country can submit their personal information.