According to Kucoin official statement, they are going to take this approach to prevent money laundering, terrorist financing etc.
They can easily said that it's because their government requires them so.
If you don't trust the new implementation happen on kucoin then better stop to use that exchange since expect that many of them will require since they want to control the illegal activities on their platform and government might ask this to happen.
Usually with these moves from exchanges, the users can't do anything against it. Whether we like it or not, the choices we only have is to comply or not to comply and leave. Despite being one of the longest exchanges to apply the no-kyc rule, at some point many have thought that this time will come.
Since its risky to go on unreliable exchange since we know that they can fake volumes and scam us.
I agree, some new exchanges aren't pressured by this change and they may still allow users not to comply with kyc but you'll never know if the volume is genuine on them.