The explanation in this video is somewhat simplified. Although not all exchanges sell or share data irresponsibly, their practices could change over time, potentially undermining user trust. Nevertheless, centralized exchanges are subject to regulation by one or more jurisdictions and might be required to disclose data to regulators or law enforcement. For tax purposes, this could include automated data sharing with CRS member countries.

Additionally, an exchange might outsource KYC/AML/CTF transaction risk scoring to third-party companies.