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? These are important questions to ask for anyone using a crypto exchange today.
If your company is in a country, of course, you will meet the regulatory system there. Not only for the legality of your company. The government also wants everything under its supervision. It can also be related to income tax and wealth owned by its people.
I only use exchanges for trading or converting assets to fiat. I don't use it like a bank to store. I don't mind KYC, especially for local exchanges.