The current KYC process is very crude and it creates a lot of risk for the exchange users and the ICO investors. First of all, the users are forced to send the scanned copy of their passports or national ID cards to completely unknown people, sometimes with shady credentials. There is no guarantee that these documents won't be misused. Also, this process needs to be repeated again and again. Every time an user wants to invest in an ICO or register to an exchange, he needs to undergo this process.

There should be a central authority to process the KYC information and this should be set up by someone with good reputation, such as Kaspersky or Symantec. If such an authority is created, then the users may feel safe about their personal information and they will be spared from the need to undergo this pesky process every now and then.