If it wasn't for evil governments regulating everything to death, then there would be dozens of exchanges all over the world, if not hundreds, simply exchanging fiat currencies for crypto currencies with no questions asked. The way it should be.
You could probably walk into a bank, a post office or various types of businesses and shops, and freely exchange your cash for other bearer instruments like gold, foreign exchange or BTC.
No. If it wasn't for the evil governments, there would be dozens of exchanges all over the world, you could walk into one of them and never see your money ever again..
Yes, and those exchanges that rip people off would be very quickly recognized by the Bitcoin community and no-one would do business with them. If there were many exchanges then they'd have a incentive to build a good reputation, otherwise everyone would ditch them and go to the competition. The dodgy exchanges would go out of business pretty quickly, while those with excellent customer service and a squeaky-clean track record would become very very rich. That's how the free market regulates itself.