I myself not against KYC in exchange as I believe it is related to regulation by government to avoid money laundering or other bad things.
That's the way it is, yes. Exchanges must know who their customers are based on (coming) regulations. This is similar to a bank account, you will hardly find a bank that allows an account opening without a passport, etc.
Exchanges that do not require KYC are therefore in my opionien alone due to that already suspect.