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.
KYC can be asked at the beginning when you register your account or later when the company detects suspicious activities from your account. In both situations, KYC is always dangerous and useless for users, but if you are ready with KYC, let's do it. If there is risk of losing your money without KYC, doing KYC is almost your only choice.
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.
I would prefer to KYC completely before using my account if I know that KYC will be asked in future and if I plan to deposit a sort of big fund to that account. It does not mean I am ready to lose both privacy and my big fund there as I know of two big warnings on KYC and centralized platforms.
Reminder: do not keep your money in online accounts.Why KYC is extremely dangerous – and useless.