Each verification step a hosting provider adds creates another data point that can be used to identify you. Email verification confirms a working email address. SMS verification ties your account to a phone number - and phone numbers are directly linked to your identity through carrier records. ID verification creates a permanent record connecting your government identity to the service.
Even seemingly harmless steps like CAPTCHA solving can leak information through browser fingerprinting. Address verification through utility bills creates a physical location link. Video call verification captures your face. Each layer peels away more of your anonymity until there is nothing left to protect.
At AnubizHost, we have systematically removed every verification mechanism that is not absolutely necessary for service delivery. The only thing we verify is that payment was received - and we do that automatically through blockchain confirmation, not through any process that involves your personal information.