Myth 1: KYC is a bad thing on a gambling site and they will stole your identity and sell it to others.
Fact: KYC is just a process that was required if you have a license they do this for different reasons.

1. To verify your age and also to check in which country you're from as there are some countries that are restricted and lastly in order to fight money launder which people use gambling site to clean their money.
2. In order to avoid abuse of the good bonuses because sometimes users create more than 1 account in order to abuse the bonus system.
3. In order to protect your account, in case someone stole your account or someone do unnecessary withdrawals, you have the power to show evidence that you are really the owner of the account by resubmitting valid documents.

So as you can see the KYC is for protecting the gambling site and the players too. But no at all, there are some gambling site which just uses the KYC in order to stole your personal information and sell to others or sometimes they might use it to threaten you or use it illegally.

So if you are going to submit KYC you should better know if the gambling site is trusted/reputable or not.