Know-Your-Customer requirements in hosting are primarily a compliance mechanism for providers operating in jurisdictions with strict financial regulation or direct exposure to US law enforcement. Offshore providers in Iceland and Romania operate under different regulatory frameworks that do not mandate identity collection for cryptocurrency-paying clients.
From the client's perspective, no-KYC means the hosting provider has nothing to disclose if served with a legal demand. This protection is meaningful even if the content you are hosting is entirely legal - privacy is a default right, not something that requires justification.