This has just began on Binance and this is what will be happening on other exchanges.
We can see recently how robbers attacked bitcoin and other crypto users and this is becoming common. These are two recent ones:
Swedish Bitcoiners targeted by armed criminalsBinance Client Executives Kidnapped, Forced to Empty Crypto WalletYou can now trade bitcoin and other crypto with other local traders on Binance and you will meet at a particular place that both of you talked about.
This is just not different from KYC if you trade with bad person. Avoid such physical trading.
Binance is one of the largest if not biggest, so it's easy for them to used this as main target of victims but the more I read about this, the more I feel something has happened somewhere before all this. It's either Binance mistakenly leak people information or maybe someone from inside Binance actually leak this information to his crew to carry out this heist, nobody can really meet you in and bargain through P2P, the most they can get is perhaps a phone number which can only be for confirmation or easy access to call a trader to close their deal fastly, I don't think a number is enough to carry out this robberies.
But the truth of this is that KYC has done more harm than good, never will you see headline of KYC in the media always about good result, is either an exchange was hacked and user information leaked or something that lead to stolen item and mostly it does happen in centralized exchanges. Some people will never accept the fact KYC is bad but then again, let's always give them benefit of doubts, they will learn and they will learn the hard way.