With these centralised exchanges, your bitcoins are somewhat protected and less prone to attacks and scams.
Centralized exchanges have been responsible for the vast majority of stolen bitcoin and stolen data over the years. They are provably the most risky place to leave your coins.
I know there are a lot of their places as you have also mentioned that we do KYCs and they don't have a problem with does so why is KYC for Bitcoin a problem if we are not trying to continuously make it look illegal.
Once again, refusing KYC and/or wanting to maintain some financial privacy does not mean you are doing anything illegal. Believing that privacy is a crime is buying in to government propaganda used to create surveillance states.
Lots of people don't make a fuss with KYC in the fiat sector because it is impossible to interact with the fiat sector without KYC. You cannot open a bank account, take out a loan, or obtain any sort of credit, without completing KYC. You cannot work most jobs without having a KYC-ed bank account in which to receive your pay. We don't like it, but it is necessary if you want to use fiat. However, none of this is necessary with bitcoin. You can open a wallet, buy/sell/trade bitcoin, earn bitcoin, hold bitcoin, spend bitcoin, swap bitcoin, do anything at all you want with bitcoin without ever completing KYC. KYC is completely unnecessary and is being forced upon us by governments which want to spy on you and track your behavior.