I think KYC is a polemic that there is a pro and some are contradictory. on one side of the KYC is needed to prevent something that can harm other parties, on the other hand, this KYC does not guarantee the security and confidentiality of our personal data,
About security, I am believe they will not break government regulation. KYC needed for government because government want to prevent illegal activity. But i am agree that always be polemic because some people do not want to send their identity for safety.
This is become a polemic because there are people who are pro and contra, I myself a person who does not objection to KYC, as long as it is in the interests of the government and not misused or abused. but some other users may be contradictory, because anonymity and privacy are the main things they join and invest in in crypto or ICO