The KYC seems genuine. Fractal is a legitimate company with software development background. I did my KYC successfully, but it took 2.5 days to get approved by Fractal. It's taking longer and longer as more people submit their documents (Fractal can process 600 people per day).
CB functionality was restored immediately by CB support staff on Discord once I figured out how to authorize the CB app on Fractal. So overall the process is working, but it's not working well. I have several objections to the way CB approached this:
1. They didn't give users any notice. This is an unacceptable business practice as your funds are suddenly held hostage unless you go through with KYC. There is no alternative. When a business unilaterally changes the terms of a relationship, they typically give you an option to leave. CB doesn't give you that option.
2. I found the CB user interface sub-standard. First of all, the note says that only US customers need to go through KYC (which is not true). There is a historical reason for this, but, really, how long would it take to update that notice? One minute? The other issue is that there is no direct link for starting KYC once you dismiss the notice. You need to log out an log back in to have this note appear again. Very sloppy UI.
3. The Fractal user interface is not very good either. At certain points, you cannot go back and change your answers because the screen scrolls away from the question in question. You need to close the website and open it again to get back to the beginning, which lets you navigate to where you want to go.
4. The Fractal KYC is overly intrusive. They will essentially only accept your passport as ID, and you will also have to send them your income tax return if you are a regular person with a job.
5. Authorizing the CB app on Fractal is extremely unintuitive. You need to do this by going to CB, and... wait for it... starting your KYC again!
So if you are not impressed by all this, or you just simply don't want to do KYC, here is how you can get around it: https://medium.com/@JimmyMcShill/bypassing-cryptobridge-kyc-a3b3cf22b0f3