i would rather undergo the binance's kyc requirements rather than trust a third party site where you have no idea if you can ever get your money safely
If you use a proper DEX like Bisq, then your money is never deposited to a centralized wallet. They never have control over your coins and so there is never any concern about getting your money out safely. This is in stark contrast to any centralized exchange, which takes full and completely ownership of your coins as soon as you deposit, both practically and legally speaking, and can do anything they like with them.
Many people now are convenient in using CEX because they can able reach out to the team when they have a problem but in DEX, once you have a mistake, it's unrecoverable.
Using Bisq as an example again, there are both mediators and arbitrators who can get involved in the case of any mistakes or disputes. You will find them much more responsive and much more helpful than any centralized exchange's support desk.
Therefore, the KYC actually contributes to fraud, albeit indirectly, and does not provide protection against it.
QFT.