KYCs are not the problem here. The problem I see is where you are entrusting your information to. Because their are certain ICOs that will only fish out your information as it has more value for them rather than the token they are creating. KYCs are a requirement of some countries' government as it is their way of regulating or being in touch with their citizens. What I would normally do before trusting my personal information to other entities such as ICOs or even exchanges I will research on them if they have a good background.
Its true, and even if you know for sure that the company you are trusting your personal information documents with have a good background, still you could not be sure that these informations will not slip out of their hands. You know, you dont know the people processing your KYC even though you know the company. They can use it for their personal interest and you can just be shocked that one day someone has used your identity already for some illegal activities.