KYC (Know your customer) is not a bad thing actually it help authorities in preventing Money laundering and anti social activities. (Because no body will create account of any anti social element in their organization.)
But here the question, to whom should we hand our KYC documents?
I do not think we should hand our KYC document to some people that we only knew by online forum and having no idea of their original identity. Remember 90% altcoins/ICO are created just to scam the people.
I have no doubt that ICO/Altcoin developers are now using KYC to scam the bounty hunters too as it is evident from this
thread.
It is now up to an individual how comfortable the individual is sharing the documents with some unknown people for few dollars.
PS: I did not take part in KYC of Polymath for free 250 tokens that I guess was worth $250 at that time.