Selling xmr is fine. Selling of other crypto depends what the buyer does with the traceable coin you sold them if you get in trouble for it.
Monero
This is the lemmy community of Monero (XMR), a secure, private, untraceable currency that is open-source and freely available to all.
Wallets
Android (Cake Wallet) / (Monero.com)
iOS (Cake Wallet) / (Monero.com)
Instance tags for discoverability:
Monero, XMR, crypto, cryptocurrency
Generally, if you sell your XMR on Trocador or Exolix, or similar and get ETH which will be sent to CEX, you should not have any problems. There is a swap mechanic, so you, in fact, get clear ETH with no connection of XMR
Will my KYC exchange account get restricted if I sell my crypto on XMR-listing, non-kyc exchange like Trocador for let's say ETH and send it to my KYC exchange account?
No, you can of course read the terms and conditions, but the simple answer is that the KYC exchange cannot see this at all. The best thing to do is to first send the amount for the sale from your normal wallet to a newly created wallet and from there to the instant exchange after a certain amount of time. So take an intermediate step, an additional new wallet.
I was making such an operation. I usually bought USDt, by selling XMR on Trocador, changelly, Exolix, etc and this USDt was sent to Binance. I haven't faced any problem with it
Should work well, actually. Though, swap exchanges are much useful