For the Brave Rewards, many users do not want to KYC through multiple vendors (Uphold). Nothing against Uphold, I am sure they are fine.
Although, a feature would be nice to allow you to choose a Service provider (like Coinbase or Kraken) where users are already KYC. This reduces the amount of personal data given to third parties. Users can choose their trusted KYC provider (that may be an exchange or not) and not forced to use one venue.
Could you build a feature in the Rewards Wallet to either Remove KYC, or allow transfers to the trusted exchange, given that exchange (Coinbase or Kraken) notifies you that the user address is KYC properly via the exchange?