This is an interesting line of thought, which I would love to explore and ask more questions, specifically, why do you think giving name and address details, which will be securely destroyed from our servers is the same as handing over passport, proof of address, selfies etc?
There are various levels of KYC if you want to call them that. Even Binance in the past when they had that no KYC rule allowed people to freely withdraw up to 2 BTC a day. If you wanted more, you needed to go through a basic KYC verification. If you wanted no limits at all, you had to provide them with much more information.
About the data being destroyed from your servers. That's a matter of trust. I don't know if you do that. You say you do, but I can't verify that myself. I have to trust that you will do that, and that you won't leak, sell, or have my data stolen by/to one of those darknet forums you mentioned below or some other 3rd party. Your platform wouldn't be the first or the last that got hacked or misused customer data.
The utility value of a name and address compared to full KYC documents is night and day. For example full KYC documents can sell from 5-20 USD on the darknet and carding forums. Names and addresses maybe for 0.50 USD at the most - obviously there is some value as they are "crypto" Fullz
I didn't know those things were that cheap. My question is, why does someone who wants to store and handle personal details of crypto traders know how much they can be sold for? Having certain knowledge isn't equal to being untrustworthy, but money makes people do nasty stuff. Or they could consider doing it in times of need.