I got the same problem. I'm using Kraken for years and was very happy to not have to give any ID proof during all this time. I told to many people to go there. I've been upset with the last change. No choice but I sent all the needed papers. I need at least 1 exchange on which I can rely for a quick bank transfer out, and Kraken is unbeatable for this matter.
I suppose this applies when you trade bitcoin for fiat, right? What if you traded only crypto? Would KYC be also waiting around the corner if you traded just crypto/crypto pairs?
I really like the Kraken exchange, but all exchanges seem to go in the direction of of asking KYC for everything. This is a disaster, and we really need some decentralized trading platform with good liquidity to replace them all.
Yeah, I have no choice because Kraken is the only exchange I deal with fiat. But for someone who isn't interested in trading cryptos to fiat (only crypto to crypto) can use Kraken with no problem.
I had always been surprised by the fact that Kraken never asked for personal information during all these years.
Nowadays we have to say to ourselves that as soon as we want to cashout in a bank we will always need to give our ID proof