That's true, but is there really someone do lend others to use their own personal information for KYC? I mean putting your ID online is dangerous enough, what more with all the detailed information along with the selfie. Also, even if I personally know the borrower, I wouldn't dare to let anyone use my identification. Lastly, you'll not know what they will do it, perhaps just like what you've said, sell it to others, use it to open other accounts or worst, use it to illegal things.
So it's really not advisable to lend others your personal information, at ALL COST.
Sharing your personal data with third parties is generally a bad practice. Even in personal financial transactions, it’s important to carefully check who you are giving your information to, what guarantees of protection are in place, and how that data will be used. It’s also worth clarifying whether it’s possible to have your data deleted after the transaction, and if that option exists, I strongly recommend taking advantage of it.
As for sharing your personal data with others for the sake of gaming, that is an enormous mistake and an act of carelessness. From my own experience, even the closest relatives can cause plenty of problems in such situations, so this is definitely something you should never do.