After what Bitstamp, HitBTC, Changelly, Freewallet and others have done it's only common sense. Lots of services already employ selective KYC scams under the guise of similar AML regulations. We can only expect things to get worse as the regulatory burdens pile on.
I've long fucked off Bitstamp and not for one second did I ever entertain those other services mentioned.
I plan on only two routes back to fiat should I ever require it.
The first is OTC for significant amounts. Why anyone would use a bog standard exchange for a decent sum is beyond me. I do not intend to wind up as a ticket number with no way of accessing money. A competent OTC deal will sort any question marks before the exchange proceeds. That's the way ALL crypto to fiat services should operate with no exceptions.
For the day to day fripperies I'll stick with crypto debit cards. They may cost a little more but if they croak it's no big deal, they never go anywhere near my bank and nothing more than piddling sums is placed on them.
I find it weird that exchanges dominate everyone's thinking when they're the shittest and most dangerous option by a country mile.