Meanwhile, the major selling point of bitcoin has been the privacy that it offers its users. With bitcoin enterprises and activities coming under the focus of regulators, where does the balance for bitcoin enterprises between protecting customers and trying to impress regulators?
bitcoin offers privacy and anonymity to some extent not fiat.
in other words you have to understand the difference between these two. when you use bitcoin and bitcoin alone you are on your own, your own bank, your own wallet and your own security.
but when you want to go on an exchange, use fiat and banks to transfer money you have to also accept all the rules that come with fiat. one of them is lack of privacy.