Day in day out there are new projects requiring kyc from investors
Exchanges requiring kyc, for some in order to maximize your ability to withraw large sums of cryptocurrencies and some even before you can trade on the exchange
The bigger question is how safe are our kyc documents?
As to the safety of our personal information, that we cannot guarantee. They may claim utmost care and privacy in treating our personal information, but it still remains open to hack attempts. However, since they are requiring KYC, traders and users of centralized exchanges are left with no other option but to comply. But if you cannot afford to divulge any of your personal information, opt for DEX or peer-to-peer transactions.