Almost all exchanges have this procedure, but it is not required. Even on top exchanges, such as Binance, Huobi, Okex, etc.
Maybe not if we are only moving a small amount but I don't think if we are transferring 10BTC.
Securing KYC in some exchanges has their reason also and I can deny that I doing KYC as well but we should be making it when necessary and know also whom we are submitting it. Because if you'll find strange with that particular exchange, it for sure nobody does.