Of course this is correct if you only have a couple of dollars worth of coins.
If you have anything meaningful I don't think that anybody sane would leave the funds onto the hands of various businesses / exchanges or not, even with KYC. And I'll tell you why:
1. Bitcoin is not properly regulated and you may end up with your funds seized by govt.
2. Bitcoin related businesses are not properly regulated either and a hack is easy to be faked. PS. Where is Binance's "official address" this year? 
3. Nothing is too big to fail / fall. A business that went bankrupt for whatever reasons will not pay your funds.
4. If the business will leave you without money, will you be able to hire good lawyers to fight for your money? With what funds? And with what odds for success?

All in all, I expect everybody sane who has life changing funds in Bitcoin will use (offline) cold storage for them.