Imo. For using spot trading (crypto - crypto) feature in binance, KYC is not mandatory. I have a friend who can withdraw crypto from binance without met any obstacle. With condition, maximum withdrawal limit is below 2 btc per day.
Based on trading screenshots that you share, you did trading using futures features. According to binance TOS, every user that use margin trading and/or Futures trading, KYC is mandatory.
You will not be able to trade futures or use margin trading if you have not been verified on Binance. That is, you must first pass the KYC, and only then you will be able to trade futures and margin trading. OP has a different problem, the exchange considered his actions suspicious and offered to pass verification without fail.