I'm not saying you are wrong by any mens, but I have not experienced this personally.
You may have had, and you don't know. I have come across lots of merchants, one of which was sending me addresses to deposit, and until I asked, they were using Binance. So, I do have sent coins to exchange.
Well. Let's clarify. A man sends over TOR/VPN his coins to exchange which doesn't require him to go through KYC procedure. Which private details could be revealed in this case?
Which part of "it isn't designed to offer privacy" don't you understand? Of course and you can make an account anonymously, but that isn't my point. Your coins could be confiscated for either being "tainted", or your account could be terminated for using a "banned IP address".
Well, correct , exchange operates with investors' coins, but the coins of the same time will be send back to a man from my example.
The user does not interact with an exchange that might deem his coins as "tainted". That's enough of a service to me. Now, if you want to know the procedure, make a reply in their ANN thread.