Are non-KYC cryptocurrency exchanges as secure as their KYC-compliant peers?

Pic Source: cointelegraph.com/
Many see the implementation of Know Your Customer (KYC) tools in cryptography as a deterrent to the Bitcoin (BTC) standard, which has predominantly promoted anonymous peer-to-peer transactions. However, regulators remain steadfast in promoting KYC and Anti-Money Laundering (AML) implementations as a means to ensure the safety and security of investors against financial fraud.
While most cryptocurrency exchanges have begun to implement regulatory recommendations to stay ahead of mainstream cryptocurrency adoption, investors still have the option to opt for cryptocurrency exchanges that promote greater anonymity by not imposing KYC processes. But does opting for the latter as an investor mean compromising security?

A matter of trust:
Anonymity goes both ways in most cases. Owners of cryptocurrency exchanges running non-KYC (or unsupported) trades often choose to remain anonymous to avoid legal scrutiny. As a result, investors must have a high level of trust in the people responsible for managing the exchange.
On the other hand, decentralized exchanges like dYdX use trustless protocols to establish a community-controlled trading platform. This, in turn, instills confidence among investors even though there is no KYC mandate on the platform.
Therefore, monitoring the history of the platform and the people running it becomes paramount when trading on non-KYC platforms.

Blockchain remembers forever:
While lawsuits backing traditional finance portray cryptocurrencies as money laundering tools, illicit cryptocurrency transactions have steadily declined year after year. Despite the ease of using cryptocurrencies without KYC verification, a study by Chainalysis confirmed that only 0.15% of all crypto transactions in 2021 were linked to illicit activities.
In addition, blockchain's immutable records allow authorities to track down the owners of transactions, further deterring bad actors from using cryptocurrencies, both KYC and non-KYC platforms, to fund their practices.
The permanent nature of blockchain has allowed authorities around the world to go after scammers, scammers, and crime launderers they committed years ago.

Not your keys, not your coins
One of the biggest concerns when trading cryptocurrency exchanges is the lack of control over assets. Cryptocurrencies stored through cryptocurrency exchanges mean handing over the private keys to the exchange.
The use of uninvestigated crypto exchanges that do not trade KYC requirements exposes investors to the risks of permanently losing their funds. While both types of exchanges, which comply and are not KYC compliant, require investors to hand over their crypto assets to third parties, KYC-compliant exchanges instill greater trust among investors and regulators.
Details:https://cointelegraph.com/news/are-non-kyc-crypto-exchanges-as-safe-as-their-kyc-compliant-peers