Exchange must follow some rules, then they need to take care about this information
That is BS someone trying to buy less than $50 should be able to instantly buy with credit card without any identification, when I was new in crypto I was forced to turn to cloud mining services to obtain some bitcoins because that was the only way until I found some local exchanges selling me and buying from me though under my country's laws, meaning they can never scam me. you just need to find a local exchange that's all.
For some people this is the hard part to buy Bitcoins, because they don't want to give their informations or they don't have the specific necessary informations like documents or bank account to have a credit card for an example. But there isn't nothing to do about it, or you earn all your Bitcoin on the internet working or you need to follow the country regulamentations to have access to Bitcoins.
[1]Who doesn't own a bank account this days ?
[2]There are a lot of ways to buy bitcoin without giving any single document to prove your identity.
I don't remmeber having providing my Identity document to an entity to prove who I am, until now
[1] Apparently, a lot of people.
People that:
1. Don't believe in banks.
2. Too poor to get one.
3. Don't even have bank in their place.
4. Doesn't have any money to put in the bank.
5. Are too young to get one.
6. Are too old to understand how it works.
7. Are unemployed (most of them since they aren't going to use it anyway).
[2] You were lucky to be one of those people that knows about localbitcoin and whatnot. Most people only depend on bitcoin exchange sites and all those websites require you to verify your identity. The verification process is much more harder nowadays. You have to upload a selfie of you holding the ID while back then, you simply have to upload an ID.