And ripe for scams due to the Id holder just contacting the exchange and claiming that you hacked the account after you transferred money/BTC into it.
The real id holder would not contact the exchanger because he wouldn't even know his id was used to open an account with his identity. You could also use a fake id with a none existing person to get an account verfied. Also in the above mentioned scenario the exchanger has no clue because he already verified the id and labeled the account verified.
With such an account a scammer could move&launder much more money in shorter time(in whatever currency) without appearing suspiscious because it's a verified user.