KYC is for campaigns and bounties that tend to be abuse by participants. KYC is for the identity of participants and crypto, in general, has nothing to do with this. Cryptocurrency is a mostly anonymous transaction that does not require any KYC.KYC benefits the campaign manager, exchanges banks and government in general because once identified, taxes will follow. 
this is absolutely right, i have only 1 experience in KYC in a local exchange service which after few years i learned that site hosting had been hacked and all data leaked in blackmarket
i noticed that once i saw my own passport and selfie was used by someone on another site, but hopefully the manager knew me and suspended that account and warned me not to do KYC any tie at any place anymore
If someone had your KYC info and tried to push it through you can bet that he wasn't the hacker but someone who bought the photos. This means that there can be a dozen people around the world trying to pose as you at the moment.
Of course no information is safe, but you suddenly became 100 times more vulnerable than an average bank account holder who knows that only 1 or 2 private companies in the world have a picture of his ID. I just hope the validity of your documents is going to end soon and past that date they'll become useless without some photoshop (and that can be spotted).