However I think kYC verification is very important in terms of crypto wallet so as to enable your assets to be secured, and it will be very heard for scammers to access your wallet.
I'd like to address this misconception. Securing a wallet is possible without any KYC at all. The platform simply can give you options which depend on non-personal data. For example, a one-time password generator is not problematic privacy-wise (think open source alternatives to Google Authenticator). Things like email or telephone verification are not necessary for account recovery, any way to communicate is possible, so for example also a decentralized solution, something like Bitmessage, ZeroNet, Mastodon or Nostr could be used for that task.
There's a twist though: If the scammer gets
all your access data, then he can access your account and your coins or data. You may believe that if you then show that you are the "legimate" owner, providing state-issued ID documents for example, you could access your account again.
But that's also not strictly necessary. If all normal access data is captured by the imposter, but one single additional code is used for recovery and only for that purpose, stored completely separately (e.g. on paper or metal) and you can show it to the service, then your proof that you're the legitimate account owner is
exactly as convincing as if you provide them a state-issued ID.
By the way, the OP was prophetic:
After all, it is only a matter of time before a major KYC scandal makes the general public aware of how dangerous and useless KYC actually is
Chivo wallet (_all_ KYC data of almost all Salvadoran adult population exposed) is perhaps such a major KYC scandal. It's of course not good that it happend just to a crypto-friendly state, but it is what it is.
