Agreed, I'm just comparing sending payments as verification as compared to exchanges requiring KYC. The users or us still needs to see feedbacks found around the internet to see if the crypto exchange itself is indeed trustworthy for us to provide our KYCs. And you are right still our private information aside from our money is something they also value to have as this is something they can also sell to the wrong hands that's why we often see Facebook get in a lot of trouble when it comes to data privacy.
There's plenty of fake feedback on the Internet and even on this forum that's being made by shady exchanges to pass themselves off as real too, and there's really very little reason to use anything other than the major exchanges like Bitstamp, Coinbase Pro and Binance anyways; the fees on the sites are reasonable, they've been around for quite some time, and there's plenty of liquidity too. Just not worth it to risk sending your KYC information over especially to smaller sites when it's being sold on the dark web. The less places you submit KYC at, the better.
