KYC exchanges have regulations, own and state, but at this point, why use KYC exchanges?

gov reg mostly.

But exchanges like withdrawal limits as it reduces their cybersecurity and financial risk.

Must be the exchange you’d think 🤔

I would suspect exchanges

Gubberment.

Fees probably to make cash of us

Govt logs into special portal for exchange. Requests limits. Company staff execute.

Wondered this myself. Took me a couple years of regular use for strike to (seemingly randomly) increase my limits to something I feel is somewhat reasonable. Still makes no sense to me.

I would venture it is the exchanges themselves in order to manage liquidity/preserve the fractional reserve.

the companies fear the gov regulations do that as preventive action.

gov regs, companies get fines for non-compliance and will default to abiding because there's more pain if they don't comply than if they do.