The problem isn't the risk of the service being a scam (which vetting by the BTC community takes care of) but the risk that the users are scamming the service.

The problem isn't the risk of the service being a scam (which vetting by the BTC community takes care of) but the risk that the users are scamming the service. Without all the 'KYC BS', it would be too easy for someone to use stolen credit card numbers to buy Bitcoin which would quickly bankrupt the service or at least cause them to have to pay high processing fees or have their processing terminated.