Well, yeah, you're right its not illegal to fake our information here because we just don't want to give them our information and just stay unknown.
it is better not to send anything. and stay away from projects that require sending personal documents, I often choose projects that don't have to send documents, because it's safer
But you need to implement KYC at the exchange you use, which is not really secure either. In 2018 I saw some information saying that the KYC of users at Binance was stolen and it was sold on the black market.