Having our data stored by the CEX is what most privacy enthusiasts fear when nothing is forever safe. If the purpose of the KYC was just to verify the holder information, resident, etc if they are genuine and all the information is deleted it's another thing but saving it can lead to vulnerability of the owner of the private information if the person in charge of the CEX users private information sell it or was hacked and the information falls into the wrong hands.
Meanwhile, all this and more is the reason why people's private information is sold on the dark web.
Most bad actors don't always care about the amount of crypto you're holding when they can make millions and more through the use of private information to execute their shady transactions.
If you must use a crypto mixer I will advise you to be sure they offer the quality privacy you want.
Yeah, I am aware of the potential risks associated with providing KYC information on CEXs, such as the misuse of personal information or the risk of fraud in the future if hackers obtain our personal data. However, similar to the level of security we experience when using banking services or trading on stock exchanges, hundreds of millions of CEX users are accepting this in exchange for convenience, investment opportunities, and the ability to profit from crypto market.
I understand your point and, sadly, we can't exclude the use of CEX at some point if we want to maximize the chance presented by the market which is the reason why some people use CEXs for investment opportunities, the profitability of the market but for convenience, i will never agree with that because it's better to prioritize security over convenience.
Having said that, we can compare cryptocurrency with banking services, or stock exchanges in which the government play a key role in how they are operating because the foundation of crypto was to operate without the middleman (government, institutional banking, etc).
I understand that the need to protect personal data is paramount for many people, and they genuinely desire anonymity through various services. For the time being, I trust the most reputable CEXs in the crypto market and focus on investing. I only hope that my account will not be frozen due to involvement with "dirty" coins. And that is my sole purpose for using MixTum over other Mixer services.
Of course, I do not object to or deny the different purposes of other Mixtum users ^^
Ok but in the crypto market space, you shouldn't trust any CEXs except yourself due to what has happened to some reputable CEXs in the past where we see their CEO abusing the user funds not to talk about taking precautions to prevent accounts from frozen by CEX.