KYC is just a tool of anti-money laundering and I think there is nothing wrong about it. IN countries like the US, the crypto market is very much regulated with the Federal Reserve having every information about the inflow and outflow of money to and from the economy so I think there is no point in avoiding KYC because whatever you do is known by the exchange.
Yes, KYC is not wrong, however, many people do FUD regarding data information. KYC is indeed very important to avoid money laundering and other frauds. some KYC is also quite easy to do such as self-identification cards, and selfies. yeah, that's easy enough to do. it's just that we need to know who we give it to.
If exchangers not trust traders, then how can traders trust exchangers...Some exchange companies misuse our KYC details