As someone who have been living in a couple of countries under a temporal residence I can say it's not that simple. In many cases the temporal residence is simply not accepted, or not in the list of standard docs, etc. Private companies don't really care about all those non standard cases, and they ask either for a passport of the country or a permanent residence at least.
So legally yes, you can pass a KYC, but in practice you're an edge case no one cares about
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