Lot of exchange sites tour themselves as No KYC for trading. You can deposit/withdraw freely but once you move a certain amount of volume through your account, they will flag it and require you to do KYC anyway. It was a classic case of bait and switch to target the 'No KYC' camp as well as a simple and reasonable mechanism to stop any possible money laundering on their site. And honestly, you can't really fault them for that. No one wants to tangle themself into some FBI's case of gift cards or credit cards laundering to crypto, exchange or not.

Now, a better way to circumvent KYC is just to buy an already verified account with someone else's info.