I once tried to become a Hetzner customer, but they wanted so much data from me, including photos of my ID, so I said no. No other compute provider requested that much, including all 3 big ones and OVH. Either I was lucky before KYC became a thing, and Google, Microsoft and Amazon inferred my identity from my payment cards, or I don't know, Hetzner is just too paranoid. I lean towards the latter. Yes, recently I created a new account in an another European compute provider, and they didn't want my ID.
So no, thanks Hetzner.
It's not so true anymore, but when they were cheaper they probably attracted a ton of bad actors (spammers, phishing sites, etc). I assume the KYC requirements were a response to that.