KYC is a massive risk with a self-custody, permissionless asset.

Since it's so easy to steal extraordinarily large amounts and not-yet-easy to trace, thieves are incentivised to go after big holders and do whatever brutal means necessary to get their coins.

The risk-reward for criminals is very good.

In other words - one leak of your address puts you at massive risk.

This is one reason why it's so important to run a LN node behind a VPN/Tor/etc. - it's not hard to find your location via your IP address.

We should all be paranoid what linkage exists online between our bitcoin_address<->ip_address<->name<->net worth<->physical_address.

The spectrum of paranoia can vary (e.g allow IP address leaking but hide physical address by all means) and I'm in no means perfect either.