I considered using KuCoin (based in Singapore) because a friend told me that they have a KuCoin card and they do not share information with foreign governments.
This is why in Bitcoin there's an idiom "don't trust, verify".
Even you trust your friend for many years, it doesn't mean you can trust him 100% regardless he had no intention to scam/give false information.
Service providers can be many thing, it could be their sister company or even government because they're accepting banks.
4.2 We will share your personal information which have been provided by you to us with our service providers. This sharing of information is subject to the Privacy Policy. The purpose of sharing your personal information with our service providers is to verify your identity and address. This is to ensure that the application is legitimate and to prevent fraud. The information shared may also be used to manage risk, as required by applicable laws. This step helps in assessing the level of risk associated with issuing a KuCard to you.
That's what my answer about "privacy", if you want privacy, check kycnot.me
Whether Kucoin is scam/shady because they only got 1.5 from 5 on trustpilot, it's not always true, AFAIK Kucoin is still legit. The same thing happened to Binance, they only got 1.6 from 5 on trust pilot
https://www.trustpilot.com/review/binance.comBut, most people hold their coins on Binance and their coins are
still safe.