This is really a very, very correct decision, which you must unambiguously understand today. Today, it is necessary to change not only the approach to the KYC process, but also the use of KYC as a whole. Because all this is nothing more than deception.
I don't think that all KYC is a fraud, this is like opening a bank, parties will definitely ask for your ID for valid identification and can be held responsible when something goes wrong, and KYC can now be used for validation when trading on exchange place or participate in ICO, and can be used to identify participants.
This doesn't all mean fraud and people's intentions to deceive others will emerge if they do. All the data they need is in their hands.