Let's be clear regarding this Coinbase event: customers were at risk because Coinbase was exploiting their user data well beyond what was required for KYC regulation. It's not like hackers broke into cold storage housing government-required user data. Not at all. Instead, customer service reps - who weren't required by law to have access to the data - were simply paid to hand it over.

In this case, the onus was on customers to insist on terms of service that their personal data only be used for what is required by law.

KYC should be abolished. Until then, just stop uncritically handing over your personal information with no realistic expectation for it being properly secured.