Let's start with "know your casino" which coincidentally follows the same acronym, but you as a user have to be proactive about where you put money.
I like the play on the acronym
KYC = Know Your Customer
KYC = Know Your Casino
First time I knew that KYC is interpreted as Know Your Casino. It's very creative interpretation of an abbreviation.
All customers signing up to any casino must read the Terms and Conditions but they must always keep in mind eventually one day KYC will be asked for one reason/excuse or another.
Users of any casino must read ToS and if they are lazy, they can check FAQs first. Basic information about KYC, Withdrawal terms usually are written in FAQs so it's good for lazy users to start with FAQs.
If they want more safety for their funds, they can scan ToS, not require to much time to do ToS scanning with keywords.
The issue is this is precisely the point of contention. Far too many casinos (and/or online gambling/gaming websites) have been using this as an excuse to not only stop withdrawals of any winnings but they have also stopped customers withdrawing their own deposits and that is really is not appropriate conduct. The forum has far too many complaints about casinos not allowing withdrawal of deposits.
I believe when a user has problem with withdrawal, they will have multiple troubling factors, not only KYC. When a casino requires KYC on a user, it's possibly that they already detected more suspicious things from that account's activities on their casino.