A very good question I would also like to know the answer to. They claim it is for regulatory reasons, but one never truly knows with these types of corps, especially when their requirements seem much more than over institutions I've interacted with :/
I certainly don't understand "employment" regulations, but I'd be surprised if you have to KYC someone for even a fiat bounty.
I pay @ThrillerX_ as a contractor for SNL and afaik, there's no KYC with that.
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Correction: there might've been KYC when he signed up to get paid on Gusto but idk.
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I was also surprised, and am not very convinced that all their KYC stuff is forced by law. Also the whole KYC for contributing to bitcoin dev seems a bit counter to the whole ethos of the community, but that might also just be me.