There is a large community of users who are not aware of the importance of completing some of the procedural tasks to ensure a safe experience while playing
I do not remember exactly but I read somewhere in the forum that because of KYC some criminal got caught as he deposited crypto (extortion money) on a gambling platform and the platform asked for KYC

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So yeah, it could be a nice thing but overall
I want to make my stance clear that one needs to avoid KYC where possible. I understand your position that every internet user in general should care about their privacy and avoid sharing private data on the internet regardless of the integrity of the party they are dealing with. But at the same time, I find that it is necessary for the user to give up part of his privacy to ensure a safe experience on any platform, especially platforms that require financial transactions (deposits, withdrawals, and transfers) because this ensures the platform's compatibility with the licenses granted to it, which will be a guarantee of security for every user.