Fraudsters can also provide kyc verification for users, so I would not call it a clear indicator of the legitimacy of a startup. And for a long time I could not understand why it was necessary at all for them to submit my documents when it was not known where they would use them. But apparently it was just an attempt to deceive investors and show themselves as a real ICO project, and not a scam
Kyc and AML are necessary procedures for investors to ensure that the project complies with financial legislation. If you do not know how to choose a ico I would advise you to study the educational section for crypto investors on the taklimakan platform. There are training courses for beginners where explains all the difficult moments of cryptocurrency functioning and tips on how to choose the best ico or sto project for investment