As I tried to explain earlier making a deposit, followed by a withdraw, can be seen as a mixing attempt, which is a money laundering indication. That doesn't mean that OP is involved in illegal activities, trying to launder money etc. but it COULD be the case. The fact that it COULD be the case is enough reason, according to AML/CFT policies, for exchanges/financial services to ask for KYC/additional information or even report the transaction to local authorities. I'm not trying to justify or defend these policies, I'm merely trying to explain how they work. The exchanges are simply obliged to follow these policies, otherwise they're not allowed to operate.
So admittedly you don't know for sure that KuCoin would report a deposit/withdrawal as "suspicious" to the authorities and that assertion is 100% based on your own speculation.
Sorry but I get the feeling you simply don't know what you're talking about and frankly I don't understand why you commented here in the first place.
KuCoin doesn't require KYC unless a user wants to withdraw 5 or more BTC worth of coins per day
or they feel "suspicious activity" has taken place on the part of the user. What "suspicious activity" constitutes is totally up to them.
according to AML/CFT policies
Says nothing about what you are talking about -- at this still early stage in the game, how an exchange interprets an individual country's AML policies is purely up to the exchange. There is no standard in this regard.
If an exchange is too heavy handed with springing KYC upon people and with-holding their coins unjustly then its our duty to warn other potential users not to use said exchange.
The reason why its interesting to me is because I've been a KuCoin user for years and never had a KYC request. But now I have to consider the prospect of steering people away from them.
Why is it interesting to you?