Uhm, i think having KYC makes things a lot safe. But one thing you should know is that even scammers can request for KYC, and that means double for them, if you go to the extent of depositing before realizing it's a scam. They will make away with your money and also sell the info you've given to them to the dark web for people needs it, maybe for a criminal purposes, or whatever they need it. So this is one of the reasons why there are people who hates KYC, some people just prefer to stay anonymous and mot give out information about themselves to anyone.
KYC or No KYC, those who would defraud will still do it, I think the reason why many sites are beginning to introduce KYC is to prevent fraud. And some people believe that only sites that ask for KYC are legit. For me I dont care, because I know how to detect sites that are legit, and I dont judge using KYC regulation.
What matters to me always is my safety and safety of my information and this is the reason why I will not be too relaxed to fill a KYC form on a gambling site. I feel the site can be hacked and the information leaked out. Until I am very sure that gambling sites have measures in place that would guarantee the site can never be hacked. That Is the only time I might consider dropping my KYC details