I don’t think it’s bad idea to perform the KYC on trusted sites and apps. It’s the way it is if you want added security. I’m not sure why people are afraid to do KYC on legit sites at all? The KYC is there because that’s part of real world regulation and it could best life saver if anything goes wrong let’s say someone hacked account, stole any money etc. You can complaint to the authorities with all your information and have your assets back. Otherwise its very hard to recognise the accounts with only usernames and email ID. Consider it extra layer of security for the future.