The reason is for that, exchange websites need to know where and to whom the money is sent to clarify you are not frauding, cheating and not contribute to terrorism. If you really want to verify your account with legal policies then you need to verify your account with passport and some other options. But if you want, you can try DarkNet for enabling safety of your identity, plus you can lose much more in there.
Crypto-currencies were created to preserve privacy and deceive the government. Any government is a gang that robs and oppresses its own people. The state is the enemy of man! Therefore, to deceive the government and hide the income is good! And what is terrorism if not a logical response to imperialism? Terrorists around the world are fighting for the freedom of their countries against the imperialism of developed countries, primarily such as the United States. Terrorism will disappear when imperialism disappears.
