KYC in some cases defies blockchain’s whole purpose of anonymous trade, which is one of its principles. There’s also the risk of exposing your personal information, if the website security platform is lacking. But even if KYC kills anonymity and by proxy decentralization, it has its advantages; for instance, you have less chance to get scammed since you're trading with a "real person" and the platform you're using is backing the trade. Also, said platform would know who you are, thus making it easier when you need to solve a problem.


I think it's a matter of risk versus benefit. KYC can be beneficial for trading, and it wouldn't represent an inherent risk if handled correctly.