We don't need to know who you are at all actually... the only thing anywhere close to KYC it requires is an email address that can be anonymously created a million places online. The way it works is we store an encrypted copy of the password that is encrypted based on your answer to a test question. All we store is the encrypted password, the test question you stored (NOT the answer-- only you know this) and the email to send the link to recover the password to. This way we ensure that you and only you can recover your password. We don't need to know who you are or anything about you other than an email address to send the link to. This video shows the process in action 
RE: Easydex password recovery