I had been using Bittrex for a years and yet I never encounter any problem like yours have, I just only activate the 2FA but not submitting my personal information on which is the KYC. But I have a limited withdrawal in it for about 0.02BTC daily due to that I am not submitting my KYC to their platform.
You can still use Bittrex without submitting any KYC? Last time I remember KYC is a must to use their exchange.
It is not a new thing for local exchange users in my country. The biggest Indonesian bitcoin exchange asks the same thing for any users who want to use their service no matter how much we are going to trade then we should provide our photo holding the ID card. It was applied since few years ago IIRC and I believe it is not a big deal for most of us. It is due to government rules imho.
It's actually a big deal for me if they're not regulated and don't have strong security protection for sensitive user data. Until this point, I don't really want to do any KYC at all in most sites. If I can avoid KYC I'd definitely avoid that, but if that's not possible I'd think again about the importance of such services. If there's an alternative, I'd probably use them instead.