its mostly for reporting reasons. Someone can see the image/video the person posted and if its say you doing stuff not exactly in the limits of the law, they can report you, in which case you can either get a letter from the ministry which is just a slap on the hand or you can actually get a ticket for it. I've read cases where some kid was boosting about how he was doing 120km/h in a 40km/h residential area on some forum, and just based on that and no other evidence he got his licence suspended and had to pay a substantial fine.
So to really answer your question ppl cover them up for safety reasons not cuz you are doing something bad in the image/video you are posting but just so that tards dont get the opportunity to create head aches for you. Me personally i really dont care so i just post my pictures with my license plate uncovered.
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