I disagree with you here. Even if it doesn't affect me directly, I no longer want to support a browser which advertises itself as having a strong privacy focus, whilst simultaneously mandating KYC for part of their userbase. KYC is completely antithetical to everything they should be standing for.
I know that. But just like centralized exchanges NEED to implement KYC at some point (due to their government laws) or they will get shutdown, I think Brave actually needs to do that if they want to keep going with their idea of giving BAT tokens to publishers. What else should they do? Just give up on their idea or go against their law enforcement agencies? As long as they have good intentions and only ask for KYC when needed (for publishers in this case) I'm cool with that. But that's me (I also hate KYC btw).