KYCs are not the problem here. The problem I see is where you are entrusting your information to. Because their are certain ICOs that will only fish out your information as it has more value for them rather than the token they are creating. KYCs are a requirement of some countries' government as it is their way of regulating or being in touch with their citizens. What I would normally do before trusting my personal information to other entities such as ICOs or even exchanges I will research on them if they have a good background.
Thats exactly my point, check where you submit your data, else I doubt you can participate in any ICOs or trading without KYC. I would even doubt the ICO if its without passing KYC and no AML prevention. Recently and soon all ICOs and already all trading platforms require KYC. But for example, the European Union has the General Data Protection Regulation since May 25, 2018, that regulates the data usage and protection, the basic principle of which is that Data should be deleted when it is no longer needed for the stated purpose, so no third party to keep the data after KYC done.