It is entirely fair to have to provide KYC documents for a service you need or desire to use but have the digital artifacts usage governed and access limited.

I let my Congressperson know policy is needed about online identity service providers needing better governance over identity data, as businesses aren’t going to do it voluntarily unless the law requires. This should probably be overseen by the CFPB, even though identity is a bit of a walk from finance (while Stripe is still primarily a financial services provider).