Majority of the crypto projects nowadays require KYC maybe because they are self regulating or their jurisdiction require them to conduct such thing. In exchanges it is mandatory to comply with Anti Money Laundering Council. Our personal data is so important and we should protect it all cost but sometimes we don't have a choice but to comply with those company who needs our informations specially exchanges, but we must make or limit the informations that we give.
Exactly, they require kyc to prevent the project to be included in the law of some countries where they prevent their local individual to invest from crypto, crypto projects might face some circumstances if they let anyone from those countries to become part of investment.
Aside from those reason, it is not all the time that requiring kyc should be passed, most of them are scam and they might sell our private information, its better to avoid those projects.
We should just obey rules of every exchange or regulations of every county, if they require it , then let it be. I know that one of the purpose of crypto is to be anonymous, but there is nothing we can do if our government requires it, for sure this is for the benefit of all of us.
Instead of focusing on KYC conflicts, let us just focus how can crypto adapt in every county, how we can develop more.