I have only verified my ID on Binance, since I 'trust' them. I pay my taxes so I have nothing to hide.
I think, for KYC I don't think it's a problem to do it in a market, or a trusted exchanger, even more so binance. well, but, most people sell their identity to airdrop which is not necessarily clear, or anything else. because of that, being careful in doing KYC is the best choice.