KYC it is not good at all in any exchange. Also, the meaning of anonymity is lost with KYC. I think all exchanges need to use external KYC service, then will reduce the risk of a hacker attack and they can bring only to funds safe. Everybody to do their part of the job.
This is why many people move to decentralize exchange, like IDEX, Etherdelta and so on. However, those exchanges are far behind the Centralized exchanges in term of features, UI/UX, and stability. There also some centralized exchanges that is not require KYC, but most of them don't provide any customer support, so it is more risky to put your money there.
I think the best option is register in a local exchange, that limit their user to certain nationality, so it is not too hard for handling user and the KYC data, so it is not easy to get hacked.
Etherdelta, Forkdelta etc ... it was worst exchanges ever. there are many complaints about them, especially on the security issue.