the difference is that you are surprised when you hear a Swiss bank gave their customer's private information to IRS but about Coinbase you are surprised to hear if they didn't give anything to IRS.
when Coinbase is in US then it is automatically assumed they already give up private information to government agencies.
True. In fact Coinbase never said they offer secrecy. The moment you open an account with an exchange and send them ID, you cannot expect that info to remain confidential.
Any info that is collected from anyone, is collected to be USED and SHARED, not to keep confidential. KYC is not to protect the customer. A customer does not benefit from KYC at all.
But naturally a kid who bought bitcoins from his allowance for 500$ a few years ago, never expected that money to grow 100 fold, and having to worry about Uncle Sam stealing it from him or her.