KYC is a required part of applying for banks, loans, and debit cards (even online). That does not mean we should make it mandatory for all types of payments just because it's crypto.
Something similar has happened to me. It doesn't make any sense, this level of demand for everyone and some products/services.
These platforms go much further than the laws say. The worst thing is that more and more of these "problems" will arise. This type of attitude will only make people look for alternative solutions, outside the system. Almost forcing them to do illegal things, when they don't want to.