It's not whether Poloniex themselves will use it for shady activities it's whether they can keep it safe. As we know from past events Bitcoin users who hold a substantial amount of coin can become targets of hackers. Exchanges in the past have been taken down and breached.
An exchange can be hacked for a non-inscribed user as well, which makes that even more preocuṕant, for if they hare hacked, the information stolen will contain an image or your face, as long as all your personal data, including, email, residence, formal ID, and so. Besides, now the hacker's target can be, in fact, the data itself. If you have a big amount they will be able to know even where you live.
The solution for OP problem is to change into some other exchange but it maybe a temporary solution because in other exchanges also will implement the same rules.So guys don't keep huge amount in any exchanges if you don't want to agree these rules because your account will be frozen until you done the verification process.
Of course, and I, in fact, as you can see at the image, I have zero in poloniex.
To me, the problem is about the shape the world is taking. We are into a surveillance nightmare, the facial recognition can say everyone where have you been (a train station? an airport?). I don't see why is necessary to share something so personal, linked to another kind of personal data with no fiscal value.
Besides, as I was talking, many exchanges have been hacked, and now the new target can be the information itself, for it worths money, people, a lot of money. Information is power.
