As far as I know, every service involving FIAT money requires quite deep KYC/AML procedures, yet FIAT is the most commonly used method of committing scams and illegal activities.
There are still exchanges and service that involve FIAT currencies and they don't have any KYC procedures.
Why exchange allows you to use fiat without kyc? I don't know any...
Additionally, when transferring fiat all your personal data is shared
At least in Brazil, with your account number you can get the ID, full name and other data.