There is no way to escape regulations.
prohibition era a century ago.. people still got drunk
'war on drugs'.. people still got high
the secret is. if a FIAT business is heavy on its regulation policy. dont use it.
War on drugs failed because it's interesting for the system. It makes the "product" more valuable and restrict in a way only a small group will have access to negotiate it. Regulation fulfils its objective perfectly, and governments can continue creating their cartels informally. In Crypto-Currency, regulations objective is to continue giving more power and disproportional advantages to big investors, like with fiat, on the financial system.
OTC is the moonshine industry of bitcoin.
custodial exchanges are the licenced pubs/bars that have a 5 drink limit and require you to have a designated driver after 2 drinks
True, but it's quite hard to deal without the middlemen exchanges... At least for now.