I think the default purpose of KYC is controlling money laundering and funding of illegal things. in the beginning, Bitcoin promised anonymity, we have now come to the conclusion that it is KYC needed almost everywhere. sounds paradoxical, doesn’t it?
KYC is needed if you want to cash out crypto for FIAT.
If you just want to swap or withdraw crypto, why would KYC be needed?
Also, do not hand any info over to any "business" that doesn't have a business number. They can do whatever they want with the info, like sell it, and they have no accountability.