Actually the problem, the way I see it, it raises the operational cost for the exchange as well as traders down the line. It places user information in a position to be compromised by hackers increasing identity theft just because these legislations are not standardized and designed for your safety. Half backed laws with only one goal in mind (Surveillance) at any cost. Certainly does not stop money laundering, or terrorism, but are sold under presumption it's for your best interest and safety, from whom exactly? The same people making these laws, interesting to say the least. Yes, I have no issues with regulation or laws for the crypto space, but introduce a damn law or regulation that actually does what it's intended to do. KYC/AMIL are ill-conceived at this point and thus far it only protects you in the same manner as the mafia protect you. Obeid by our laws or we shut you down, or arrest you, even though you didn't do anything wrong. KYC/AML need to be revised by people that actually give a damn about the people they govern and not just their own agendas. Need to be revised by people that actually have a foundation to understand what crypto is in the first place. Well, that's my 2 cents worth.  

So, what will happen if they use fake IP address that has not been in USA? 

Using VPN to bypass CryptoBridge’s KYC

The following steps describe in short how you easily bypass even an already accepted KYC:

Use a virtual private network (VPN) service which is not located in the USA. This way CryptoBridge can not make any conclusions about your actual position and can not refuse the service.

Create a new BitShares account with the VPN connection and accept the terms of service with answering the “Are you a U.S. citizen?” question with “No”.
Use the “Send” feature of the UI to send your funds from the old account with active KYC-demand to the new “Non-US” account on the BitShares blockchain. Because this is done on the BitShares blockchain it’s nearly free.

Use CryptoBridge with your new account via VPN and without KYC.

Using Gateways without KYC

If you don’t want to use a VPN you can simply use another gateway provider which does not demand you to do KYC before depositing or withdrawing assets!
For example:

Use the OpenLedger gateway to deposit BTC. You then get credited OPEN.BTC.
Exchange the OPEN.BTC to BRIDGE.BTC and go on trading on CryptoBridge with BRIDGE.XXX pairs.
If you want to withdraw the BTC again, exchange the BRIDGE.BTC to OPEN.BTC and withdraw them via the OpenLedger gateway.