What is the security risk of uploading a driver's license and utility bill to xbtce? Are they as trustworthy as btc-e (which may not be saying much)? I likely did something similar with btc-e years ago but want to understand the risk, especially if this process just was announced yesterday.
There isn't any. btc-e.com is a well trusted company which is in the business for years and besides that, every other company asks the same stuff if you are dealing with FIAT. Hundreds of people submit their personal information to the online exchanges everyday. Unless you have something to hide, there isn't anything you should worry about.