Read this article by Naomi Brockwell.
I avoid KYC wherever possible for this very reason. It's an insane honeypot of private info that doesn't actually stop criminals.
The biggest benefit of living on digital cash is you get to avoid KYC in almost all cases. No data honeypots, no waiting for permission before using your money, no privacy leaks.
Ask me how. I'm more than willing to help.
Here