I myself not against KYC in exchange as I believe it is related to regulation by government to avoid money laundering or other bad things.
That's the way it is, yes. Exchanges must know who their customers are based on (coming) regulations. This is similar to a bank account, you will hardly find a bank that allows an account opening without a passport, etc.
Exchanges that do not require KYC are therefore in my opionien alone due to that already suspect.
Doing KYC for trusted exchanges like Binance is ok but it does not mean that we provide KYC to all the small exchanges like Kryptono especially when their intention is not good. If the site is unnecessary locking out accounts, does not give answers on support, then they can even misuse our KYC. So we should be selective in doing KYC.