Its true that if we are not using it for any illegal purpose why the kyc is concern .Its really a complicated issue .All top exchange wants to make everything securely and most of the top exchange asking you for kyc when you are trying to withdraw a huge amount of crypto .They actually wanna know their customer details before doing a big deal .They don't wanna make any hesitate situation after doing a transaction .It has a lots of advantages and also disadvantages .If your data somehow become leaked you will be on risky point .So that nowadays DEX are become more popular .It always an accident when an exchange fall into any scammed or hacking .So there is everything what i know about this concern.
The government requires them to do so due to anti-money laundering laws. For them to keep their license and to continue operating they are requiring it with certain rules. On our part as investors and traders, we must do diligent research on whether that exchange is worth using. Does it support their laws? And have a good support system for our queries and at the same have a reputable image. We can not guarantee the exchange that didn't require KYC as legit same as those who require it, so better research before depositing money in it.
Well, in general, platforms should always watch their backs for the possible problems that they can cause from the countries where they work, there is something that I did not like with Binance a long time ago, and that is that it blocked the accounts of Colombians, just because the police from another country asked to investigate them, and this seemed disrespectful to me, because they take advantage of people's data to track their transactions, so this seems unfair to me, in fact the Colombian authorities complained about this to the exchange because they do not have the right to do such acts that go against the identity of their country.
