Thats where the industry is poorly implemented. KYC should be more of universal accreditation that many websites and projects can then utilise. You wouldnt have to worry about any particular developers team and their integrity or their system database, etc
I have only verified my ID on Binance, since I 'trust' them. I pay my taxes so I have nothing to hide.
Sure thats convenient and companies should make it as easy as possible to but the line only the guilty need fear is flawed logic