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?
I think companies and projects are looking to gather as much information from investors or bounty hunters. to easily control the amount of people using their money. or some other reason. But there has never been a case involving a KYC leak. It proves that your password is very secure, so don't worry about it