Unless there is a good KYC implementation, fully decentralized exchanges should and will never be allowed by governments due to AML reasons.
You can not expect to trade coins with people that are involved with child pornography, terrorism etc.
But you're using banknotes used by drug dealers previously, it doesn't look annoying to you. Double standard?
The banks have a very strong KYC policy but yet they can't stop money laundering, so what? Oh they even encourage and help individuals and companies to launder money
@OP point on when an exchange is hacked the funds are not guaranteed, as banks do.
Ok, but one of the first things you say about BTC to someone is to tell them that payments are irreversible. It is, therefore, the responsibility of the user. When we say "Be your own bank". There are also the responsibilities that go with it. If someone can't take them on, maybe they shouldn't join the crypto world.