Will you send your docs in KYC case?
Do you think that it really helps to find illegal activities?
When dealing with Fiat/BTC I always do kyc, if it's a trusted exchange with high volume and the exchange is respected in the community. There is no other option.
If I am doing only Fiat/crypto I never do any kyc, as it is usually not required. There are many good exchanges such as binance that doesn't require kyc.
You would really come into a point on where you dont have any options but to deal with KYC thing but depends on what exchange/services you are engage in.Just like you said if you do saw that
you are dealing with some trusted ones there would always be that confidence even you do know the risk on giving out documentations and its entirely different on the feeling
when you are trying to comply with shady ones.Your intuition will just tell you on what you should gonna do.