Today I tried to check in on the status of my KYC-hell account with IDAX (long story as to why I would use such a shit exchange). Last year they had asked me repeatedly for more and more KYC documents, each time I was told the documents were "insufficient to verify my identity". I gave up at some point and just wrote off the 0.2BTC they were keeping hostage. Turns out, they exit scammed a few months later! And I'm realizing now that they figured "why not drag this exit scam out for awhile AND collect as many passport images and full names/SSNs while we're at it"!
KYC is a SCAM, whether it's done by governments or scammers makes no difference.