Many are afraid that their personal data might be abused but serious companies wouldn't risk that much to endanger confidental private data. Of course, some data breaches are always possible but we are exposed to such risk every time we go online and use our data.
KYC helps with fraud and illegal activities so in general it's good for crypto community.
Perhaps you would be right if the personal data of users were not sold on the darknet.
After all, all this data came from somewhere, more than once even legitimate projects were noticed in the e-mail information about their customers.
Personally, I do not mind sending my personal data to an honest project, but where is the guarantee that they will be safe.
In addition, we are in the cryptocurrency market, the values of anonymity and security reign here. I understand that not only cryptocurrency projects merge information, more often banks do it, but nevertheless this remains a problem.