its inevitable for all of the exchanges out there the government is the one forcing them to collect information about their users otherwise they cant operate their exchange. you should not worry about it if your not laundering money. there are some useful purpose of KYC in order to eliminate those people who use their exchange or crypto to launder money.
That's a bad decision early for the exchange. Binance the leader is not asking for KYC upto 2BTC daily trading.
The move would increase the dependence of Binance.
KYC with it's recent misuses have led negative image of it on every investors and traders.
Binance would have KYC if they didnt move out in china they moved their headquarters and servers on japan because of the crypto ban on china before.
That's why binance is moving to the malta, but remember all of the major exchange sites are putting tier for the users, It's much better rather force them all to complete KYC verification. Sometimes there is a someone that doesn't have the document that will be needed to complete KYC verification for various reason.