why some players still fear kyc?

Why the fuck should someone not fear KYC? It brings no benefit to you, it brings no objective business benefit to the platform -- it provides an avenue for control and abuse, and creates a massive risk for everyone involved. If it is mandated by a government, then the platform is putting itself and its users into jeopardy but it has no choice. If it is self-imposed, then the owners are possibly malicious. Does KYC prevent crime? No. Does KYC prevent money laundering? No. Does KYC prevent abuses by players against the platform? Also no. All it does is make those things slightly harder and nothing more than that, but slightly harder is completely useless for all of those things. It may prevent some random idiot from doing money laundering, it will not prevent any serious criminal from doing whatever he wishes -- they have an endless supply of people that can do KYC, willingly or forcefully.

On the other hand, this allows company employees that are malicious to abuse you in many ways. If you have a lot of volume employees can sell your information to criminals in your area. If you have big winnings they can do the same and the list of situations that may occur is endless. No benefit, only risk.