regulations are about exchanges creating THEIR OWN policy for identifying their customers, to do KYC on them to look for AML and report suspicious activity.. that is like 90% of what regulations concentrate on..

you can easily separate the small 10% consumer protection stipulations of regulations. and instead do a full consumer protection scheme without the regulation.
put it this way.. Apple inc refund unsatisfied customers much faster then Goldman Sachs.. yet apple is not regulated, Goldman Sachs was.. the difference is apple inc concentrates on consumer protection. goldman sachs concentrates on their own creation policy to ward off customers

if you actually seen the difference between the two. and se how small the consumer protection requirement is in regulations you would laugh at how useless regulations are and how things like the financial crises was able to happen

if you think regulations are a saviour for consumers.. thats a lie.

the only reason wall street love regulations is because if they are transferring funds between other regulated exchanges.. the first exchange doesnt ask any questions simply because the mindset is. 'oh the other exchange is regulated, they can do their own checks and audits, so we are safe to just let the money roll"