Almost all exchanges have this procedure, but it is not required. Even on top exchanges, such as Binance, Huobi, Okex, etc.
These are the 3 exchange I use most often in this market and you don't need KYC because they don't force users to do this. However, you will be limited daily withdrawals but for me, 1 day withdrawing BTC is more than enough because I do not have much money in this market. If you are a new investor, you should take the time to learn about the crypto market then choose a secure exchange.
It's better to the exchange to not force their traders to pass the identity like id or anything personal . But if their withdraw a huge amount of money and they are requirinv to pass it Im not against that .
They have many exchange even the require KYC the trader needs to pass it once they withdraw a very big amount if money everyday but if it's only hundred dollars or thousands dollars they did not requried the traders.