With KYC I think the problem lies when we have to do KYC everywhere just for a couple of bucks and sometimes for dodgy projects that are not worth giving up our privacy for.
This is a bit of a newbie thing to do, that's the reason I always encourage against KYC. Plus in my opinion KYC should have a threshold requirement for those who are moving big amounts of money and not required for those moving amounts like $4 USD a month.
Thanks for reading! :D