You're absolutely right, and it's great that you're bringing this topic up because I think it's definitely been underdiscussed.
Not only are there exchanges that ask you for KYC information only when you withdraw, there are also sportsbooks, casinos, and hosted wallets that do the same thing. A remember that a recent case is with Changenow.io, with them asking for identification on a customer that actually had quite a large transaction with them even though they used to advertise themselves as anonymous.
None of them will ever ask you to offer verification documents before you want to get funds out of their platform.
IMHO, these sites are completely untrustworthy and unprofessional, and should be avoided even if you are willing to provide them. It seems like a blatant excuse to hold funds in the name of KYC. A lot of the times, they aren't even legally obligated to do this, even though they argue this way.
If you want to implement KYC, do so before any deposits can be made. Don't do it after.
The question is? How you would able to select if you arent aware if that's their way of asking KYC unless if you do able to read up feed backs about that then we can eventually avoid it
I do remember the recent case of Changenow and im aint surprise that most of similar services would really act just the same where claiming to be anonymous then suddenly they turn
into the opposite way.When you do caught in the middle you wont really have any option but to do that KYC. It sucks but you wont really have any choice.