I think kyc in crypto exchanges should be encouraged because it create room to know customer identity very well
Basically, the essence of KYC is for anti-money laundering policies, which is a normal thing to put in place when it comes to a financial space and looking at the way people can take advantage of the space to launder money from fiat and the likes.
One way or the other, I see KYC as something that will eventually end up becoming a thing generally in the cryptocurrency space as the space gets a lot matured. So as a person, it is only left for you if you want to go all the way knowing the things you get to gain anyway, or you want to stay out.