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Great question @twigman so each company holds KYC data differently so I can only speak on how we do it. So in AU we are actually legally required to hold on to the KYC data for security purposes of the user so even if we didn't want to hold on to it we are actually required to (within Australia anyway , unsure if other countries have these rules).
We personally secure them and only those who require access have access it is not something that just anyone can access and it is not something we take lightly to protect. The same level of detail we put in securing the huge amount of funds we put the same level of care with protecting the KYC data of our customers.
I hope that gives some insight and answers your question let me know if not.