Can you trust Binance, Bybit, OKX, Bitget or any other popular exchanges not to sell your ID and passport on the dark web? However, many of us use these exchanges and don’t red flag them.
No one can trust any centralized service that asks for KYC, even if they don’t sell it on the dark web, it can be handed over to the government upon request, it has already happened before, so you can’t red flag Cryptomus because of that
You are right, governments can demand data from any user with proper proof and documentation only. Speaking of tier 1 exchanges, they usually avoid the request coming from a developing country where crypto is not announced as legal. Like in my country, a few years ago (2022),
$100 million was scammed throughout the country. The scammers used Binance accounts to receive payments and scammed everyone.
Our government demanded the details of the scammers but they did not give much and the funds are still not refunded. The point is mostly these tier 1 exchanges don't give details that easily. Overall I do agree with you that we must not take guaranteed that they care about their customer's data (KYC).