Is KYC trustworthy?

Could you elaborate on why some individuals question the trustworthiness of Know Your Customer (KYC) procedures in the cryptocurrency and finance industry? What are the main concerns surrounding KYC and how do these practices aim to address them? Is there a balance between ensuring security and maintaining privacy that KYC systems strive to achieve? And finally, what steps can individuals and companies take to ensure that their KYC processes are trustworthy and reliable?