Not surprised, since I've been thinking that anonymous exchanges are going to become extinct for quite some time now, but Kucoin was one of the last ones with a decent reputation.
And by the way, this is another reason why you don't keep coins on exchanges for long. It isn't like they're pulling a scam here, but if you want to pull your funds off Kucoin before having to verify your identity, looks like you'd be out of luck and your coins would be stuck there. Fortunately I just had some dust there.
I just trade my Nano there and there was no notification that I should go for KYC, maybe because I haven't reached my daily limit I only trade and withdraw $150 worth of coins there in the last three weeks, I guess I am still in a safe side and have not yet marked as big traders.