What I think is, once you have used those services and compromised your identity, you never know if they are going to sell your identity to others. Anything leaked on the internet is not safe anymore. Coinbase admits that their KYC data collector company sold users' data on the darknet for $1 each. So, we don't know if we are safe on any platform.
Banks are one hand on the government. They will give your information to the authorities whenever they ask. No, it is recommended not to use banks or cards to transact your cryptocurrency. But, who cares?