But have you ever wondered why exactly they do this? Is it just about obeying rules, or is there something more to it?
It's obvious, and anyone who is experienced with cryptocurrency and financial flows should know that AML is the major reason for that. The government wants everyone to be accountable, and they also want to tax exchanges appropriately.
But do they handle this process themselves, or are they hiring other companies to check your details? And how safe is your information once you hand it over? Some platforms also set limits on your account if you haven’t completed KYC.
The limit is to force you to do the KYC and to satisfy the restriction limit stipulated by their regulators. As for who is handling it, you never can tell, my brother. All I know is that our data often gets leaked.
If you’re curious about these things, it’s fair to ask of course: Why does the exchange really need your data, what do they do with it, and who actually gets to see it?
This is the least of what people should naturally know, so why ask again? Well, if it is to satisfy your curiosity, why not? But it changes nothing, and you are free to walk away, it's a choice.