Sure you're talking about CEX or centralized exchange. These exchange needs to comply with KYC and it's compulsory. So, you shouldn't be surprised If they are requiring KYC verifications.
If your primary concern is your privacy, then you can always opt to use decentralized exchange or do a peer to peer transaction when you're buying or selling Btc.
The KYC from CEX isn't a threat to your privacy and freedom, because there are still a lot of option to stay anonymous while transacting.