I get that it goes against the fundamentals of crypto currency, but exactly for what reasons though? Assuming you're not using it for anything illegal (if you are then it's understandable), why the concern? I'm asking specifically when trading.
Its true that if we are not using it for any illegal purpose why the kyc is concern .Its really a complicated issue .All top exchange wants to make everything securely and most of the top exchange asking you for kyc when you are trying to withdraw a huge amount of crypto .They actually wanna know their customer details before doing a big deal .They don't wanna make any hesitate situation after doing a transaction .It has a lots of advantages and also disadvantages .If your data somehow become leaked you will be on risky point .So that nowadays DEX are become more popular .It always an accident when an exchange fall into any scammed or hacking .So there is everything what i know about this concern.