KYC is for campaigns and bounties that tend to be abuse by participants. KYC is for the identity of participants and crypto, in general, has nothing to do with this. Cryptocurrency is a mostly anonymous transaction that does not require any KYC.KYC benefits the campaign manager, exchanges banks and government in general because once identified, taxes will follow. 
this is absolutely right, i have only 1 experience in KYC in a local exchange service which after few years i learned that site hosting had been hacked and all data leaked in blackmarket
i noticed that once i saw my own passport and selfie was used by someone on another site, but hopefully the manager knew me and suspended that account and warned me not to do KYC any tie at any place anymore