Will this be the start of KYC on exchanges like Binance as well?
Binance is already implementing its own KYC such as facial recognition and proof of address, although the limits are different. If you compare it with the new Bybit verification, Binance offers a much higher limit for a lower verification tier. A 100
BTC daily withdrawal for Binance would only require up to facial recognition. For Bybit, such verification level is only for 50
BTC. In order to reach the 100
BTC limit on Bybit, one has to submit proof of address. Proof of address for Binance would already give you unlimited BTC withdrawal.
https://www.binance.com/en/blog/421499824684902130/%E2%80%8BWhat-is-KYC-and-How-Is-it-Increasingly-Important-for-CryptoGiven the similarity of the structure of these verification requirements between Bybit and Binance (2 BTC verification free threshold), it does seem like a precursor to Binance doing something similar.
Although I think both Bybit and Binance are keeping their 2
BTC daily withdrawal limit to non-verified users.
Incidentally, both Bybit and Binance are caught in the same regulatory circumstances in Canada, UK, Japan, and other countries.