Is doing KYC safe?

Is undergoing Know Your Customer (KYC) procedures in the cryptocurrency and finance industry truly safe? It's a legitimate concern given the sensitive personal information involved, including identity verification and potentially financial records. After all, breaches of data protection can lead to identity theft and financial fraud. But are these risks mitigated by the security measures implemented by reputable platforms? How do these companies ensure that the data collected is kept confidential and secure? Additionally, does the KYC process itself offer any protection against fraudsters or illegal activities within the cryptocurrency space? Understanding the answers to these questions is crucial for anyone considering engaging in cryptocurrency transactions.