Some of the platforms right now is having a KYC verification before you can use their platform and it becomes now centralized because they want to monitor who is their customer has a large amount of wallet stored and transferring funds they don't want to be included in any legal actions that's why they need to monitor bitcoin is just only the method of payment. Still, this js the bitcoin which is decentralized.
If you trade on a centralized exchange, then you must confirm your KYC data. KYC data is needed by the 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.
And that is why people are actually scared of putting their personal information on the internet or in the hand of these centralized exchanges. There are a lot of options out there that don't require KYCs, why do it in a centralized exchange when you can do it in a decentralized exchange? It is not the lacking of KYC, it is the downside of using one.
Right now there are a lot of exchanges does not require their customer to push to have KYC and this is a good thing also some of the exchange right now is allowing dummies email for verification still thus is a good thing for bring anonymous.
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.
One of the cons of the KYC is their can possibly use the personal information of their users this can be use as the data breach this is the common issues like this from a platform having a KYC also like the social media, the common questions is how can you secure the personal information of your users.