anyone can do that as long as you have nothing to hide and you trust the casino, making sure you give your documents to only reputable casinos, this will definitely make alot of sense solving all this KYC issue's.
Well, I have to add that reputable casinos will not confiscate your funds without any genuine issue, it is simply not sustainable and IMO, less profitable in the long run

. A genuine rewarding casino can earn 100 times for than a dishonest casino.
Regarding handing out your KYC documents upfront at the time of registration, IMO, it is a very good idea, but there is no guarantee that pro-KYC casinos will not ask for additional documents. So all in all, if you are playing at reputable casinos and not cheating, you will enjoy a good experience.