Local exchanges started doing the same for them to know whether an individual trader's funds come from a clean source or not. Personally, I have opted out of the said KYC procedure and perhaps I would too on my Bitstamp account (which remained inactive for months now). What right do exchanges have to know such details anyway? If a trader has the capacity to trade, then let them be. They already know the details of the person. Just chase after the said person should something shady occur with that person's account, no need to learn all these unnecessary stuff.