Or are there countries where IDs and maybe phone numbers are required before making purchases physically? Imagine how strange it would be to present your ID before buying or selling in physical world. Not sure I've ever been required to present ID before buying or selling, even physical foreign currencies offline. The kyc phenomenon seems to be peculiar to online world and bank transactions.
I think human right to privacy shouldn't be violated in anyway unless the human is involved in serious crimes or some suspicious activities. And even when ID becomes necessary, it should be handled with care to prevent it from going into the wrong hands.
By the way, the kyc issues could make thriving online economically alot difficult for people in certain remote places who probably prefer to have little to zero contact with modern world. This are the kind of people crypto would be more suitable for, unfortunately they will be denied access to lots of cryptocurrency exchanges in existence today.
This kind of work is done in very few countries where most people do not trust others because there are many countries that lend goods because of familiarity. But it will take some time because then it gets used to it and that is what happens in most developing countries like Japan, China, Korea. But if this facility is not available then the money we have will be diverted from here to there which will be your loss and because of this you will prove these companies wrong and do not use for KYC.
When all our data is distributed among people, we have to worry about it. Although our image and many things are used only as a collection, do not use it for our wrong work. This thing is very useful because if you have to create an account and you need it badly because of your money coming into it, you will not be able to do anything except KYC so it is very useful.