I do not know that KYC is profitable for crypto, which is clear KYC only verifies our data for withdrawals from websites and I think KYC is not important and this is just a trend so KYC is used everywhere.
I dont how KYC makes profit for investors. Dont misunderstand the reason for KYC, you can do a little search on it, it will help you. The idea of KYC is to have personal details of individuals submitted to prevent laundering, bank's involvement in any form.
KYC is only profitable to the exchange if they will sell your data, lol.. that's the worst case scenario and probably exchange that would do that is planning an exit scam.
Profitability has no relation to KYC as it's just a requirement for people to be able to invest and trade in a certain platform, and normally, those company who requires KYC are companies that are regulated under the control of the government, and that's something we need to verify first before submitting for KYC as that's an important information that we cannot just give away to untrustworthy company.