If you trade on a centralized exchange, then you must confirm your KYC data. KYC data is needed by centralized exchange to find out and verify user data. And we know that KYC can be misused by irresponsible individuals. That's what KYC lacks.
This might happen to you when you make KYC at any exchanges
https://thecryptosight.com/hacked-kyc-data-selling-on-darkweb/. Any possibility that might happen to all exchanges and it makes people to worried about it.
We might not want to do KYC but it comes to the moment that it soon to implement across all CEX and DEX. I know how it feels bad to our side since we might lose our privacy but I'd never think it is big issues here. The most important is to minimize scamming, fraud, and any form of illegalities by imposing KYC. I understand that we never been anonymous during that time and that makes us take an option what we see is good or bad or just leave crypto at all.