But if you do not give identity documents in these big websites or exchanges, they will put limit or restrictions on your account. Even to do P2P transactions on Binance, some sellers and buyers demand identity documents and they will deny the deal without these documents.
I think he meant about the other end that you're trading with, the other person but not the exchange.
I think I did not out it the way I suppose to, but you are right, I was not talking about the exchange but about fake sites and ways unscrupulous people are demanding for peoples personal identity documents and using it in a wrong place to get verify. If you read the link j have above, you will see how it works. The scammers use the victim identity to register on Binance and also send money from the victim bank account.