So this is the price users have to pay for using their "regulated" exchange/wallet? Welcome to the "paypal" of bitcoin 
It's the power of concentration it is a tad concerning
However as long as their is sufficient choice and competition developed to complete against Bitpay their is a good chance of avoiding the monopoly trap.
I prefer the "they can't regulate bitcoin" option that lured me to it to begin with. So where are options for 100% privacy?