As we all know that one thing that might hinder the acceptance of the bitcoin system for the government is the hidden identity of the members. Local exchange should do intensified KYC so as to avoid the system of cryptocurrency being abused by other members as well like money laundering, funding of terrorist groups and others as well. Some of the country had done this things already and the question is would favor to do KYC on your local exchange?
Here in our country we have already required to submit valid ID's, Government certificates and other data to our local exchanges to ensure that we are legit persons. Years have past but there is no single complain that a persons data was used or was stolen by other people thru our local exchanges therefore i conclude that our personal data are safe with them so i think there is no problem if a KYC will be applied in every local exchanges as long as it will required by the regulation as per policy of the government.