One day and exchange like Binance may block a user's funds and will request for KYC verification before releasing the funds. How will you go about this?
We use Binance internally as an "institution" we are fully KYC/AML verified. User won't interact directly with Binance we only use their "api' for trading and liquidity.
Then Binance will simply block you, even if you have passed their verification schemes they will block your account as you are not doing your part on identifying the users that are part of your platform, and even if binance did not do this you can be sure that governments will eventually put attention to you and try to force you to comply, so even if the community has a big interest in exchanges which do not force them through KYC we know that as long as they are centralized they will have to eventually force their users to go through it.