KYC creep into trading platforms – a necessary evil or overkill?

Been thinking a lot lately about the increasing scrutiny on CFD platforms regarding KYC/AML. It feels like every year the requirements get tighter, and honestly, sometimes it feels like we're being treated as potential criminals just for wanting to trade a bit of $EURUSD or $SPX. On one hand, I get it – nobody wants to inadvertently fund nefarious activities, and protecting client funds is paramount. The regulators are clearly trying to prevent the next big fraud or money laundering scandal, and the reputational damage for a brokerage caught out is immense.

But then there's the practical side for us as traders. The onboarding process can be a nightmare of document uploads, proof of address, source of funds, and sometimes even a video call just to open a basic account. And for those of us who might use multiple platforms for different asset classes or strategies, it's a repetitive time sink. Does anyone else feel like there's a point of diminishing returns here? Are we reaching a stage where the friction of compliance outweighs the actual benefits for legitimate traders, or is this just the price of doing business in a regulated environment that we all have to stomach? Curious to hear others' experiences and thoughts on where this is all heading.