I'm not happy about it, but it should come as no surprise when regulated fiat exchanges avoid doing business with "risky" customers. That's their prerogative.
We've seen what can happen when exchanges flout money laundering regulations.
As far as I can tell nobody is really holding a gun to CZ's head and forcing him to do fiat business in some hyper-regulated shithole, nor forcing him to screw customers over without properly disclosing what the customers are or are not allowed to do with their funds. It is entirely Binance's fault for handling it the way they did and they fully deserve to be ridiculed as an example of extreme overreach. Not that it will help much, the governments will try to criminalize coin mixing and greedy assholes like CZ will continue to throw their customers under the bus.