That's the weakness of KYC and we had a taste of it when facebook got hacked and another one when this forum's database got stolen. I miss the times when we could trade freely without having to deal with KYC on sites like bittrex and poloniex, but things change. Unfortunately, in most cases they change for the worse.
I used to be and still am against KYC and government agencies trying to oversee crypto trading, but reading the posts of some forum members here makes me thing that I'm in the minority.
Your not in the minority, it's just a necessary evil we deal with. Personally I'm not a fan of KYC it can at times make things more of a headache when funding to exchanges than it can help. It is a matter of trusting the central authority in charge of the KYC processing to be able to protect your information since if it leaks that is a new juicy database that will show up on the net.