Why always kyc mandatory?

What are they do with our information if we submit kyc?


I am new in Crypto industry so from 3 month i try to trade on Exchanges i mean Best exchanges like (Binance, KuCoin etc)
So when i try to withdraw big amount like more then 1k - 5k Dollars they asking for kyc so now i really Don't want submit kyc in any exchange.

Please suggest me some exchange where kyc is not needed at all.

Crypto created for no tracing so why kyc?

Is they Tracing us ?