I understand where you’re coming from, but I strongly disagree with the idea that KYC has become a “benefit” or that it doesn’t affect anonymity anymore. Here’s why:
1. KYC massively increases user risk.
Every major exchange that collected IDs has suffered leaks - Binance, Coinsquare, BitMart and many others. Unlike a leaked password or private key, your passport, selfie and home address can’t be “rotated” or changed. Once exposed, you’re permanently vulnerable to identity theft, phishing, blackmail and credit fraud. That’s a huge liability users are forced to take on for very little in return.
You're right about the risk, but let's be clear: massive leaks of confidential customer data are not just a crypto problem. It's a huge issue in traditional banking too.
For example, back in 2014, the JP Morgan Chase breach exposed the data of 76 million clients. I doubt all the crypto exchange leaks combined have lost that much information
