I usually don’t get myself worked up over KYC issue, it is absolutely nothing, majority of us have done KYC locally and it has not killed us, there is no bank account that we will open or trying to get an international airport that does not require KYC to be done, so this practice has been part of us.
There is a massive difference between complying with KYC requirements for an international, reputable, regulated, audited bank, which has existed for years without being subjected to any hacks or leaks, and complying with KYC requirements for a brand new exchange, website, or ATM, which has existed for a few months, has completely unknown security practices, and in many cases, a completely anonymous team behind it. You have no idea who you are sending your documents to, who else has access to then, how they are storing them, or what they are doing with them. Even large companies in the crypto-world which you would expect to be reputable (such as Coinbase) have been caught selling their customers' data.
