On one hand, KYC can help prevent fraud, money laundering, and other illegal activities.
Technically, yes. But in the grand scheme of things, KYC does more harm than good. We couldn't count now how much platforms(inside and outside the cryptocurrency space) have been hacked and with their databases breached.
Yup, having KYC always has been harm actually. With more and more projects coming to life they will start asking for KYC as mandatory step for user account verification. This is not just limited to exchangers anymore but also to the new alt projects with high throughput.
Its literally getting equal to having a bank account opening process and submitting everything to the world. One thing is sure, you cant trust exchanger and how big or secure they claim themselves it wont matter. There always be someone smarter to hack into it.
Might be that harmful but in order to be able to benefit out on services that could bring some convenience and accessibility then you would really be needing to sacrifice your identity and this is why its a matter of
choice which some doesnt really care on sending out their ID or documents as long they are able to benefit out on such usefulness or convenience.It is really just that there are really that people who are
really that mindful about their privacy.This is why its a matter of choice whether you do make use of them and sacrifice it out or would really be skipping out just because you dont
really like it.