KYC is an attack on Bitcoin, and it's usually advised for Bitcoiners to stay away from passing KYC and exposing their private information. So, my question is, since there are some cryptocurrency exchanges that don't make KYC compulsory for the purchase and withdrawal of a certain amount of Bitcoin, what is the risk of purchasing Bitcoin on such an exchange?
As long as it is a centralised exchange, I believe they will be able to obtain your personal information even if they do not need KYC. Since you do not hold the private keys to such monies, they are not yours and can be taken away. Keeping your money there is just a bait to make you to provide your personal details. If you are not able to withdraw your funds for whatever reason, you will be forced to do KYC to access such funds. Not your keys not your coins.
