Binance is a Chinese company and they certainly reason based on their cultural background, where censorship may manipulate "high-power" responsibility.
Binance has high liquidity, low fees and under 2 BTC/day they don't ask for KYC.
Whether we like it or not, this is all most traders may care about.
If the problems would be so big and annoying, people would leave.
About contacting the authorities.. Binance is in Malta nowadays, which afaik has quite a lax legislation. So .. good luck with that. If you have a proper concern, CZ is still your best chance.