You don't need to trust the service based on historical records, which don't represent future performance. If you trust the blockchain security of bitcoin/Ethereum, then you really can trust the multisign escrow service, because this is based on open source script/program, and once completed, the transaction is irreversible.
You definitely still need to trust the escrow.
Lets say I'm trading with a malicious third party who is trying to steal all my bitcoin. I send all my bitcoin to the multi-sig escrow address, with one key controlled by me, one key controlled by the malicious third party, and one key controlled by you. The third party sends you a message saying "Why don't we steal all his coins in a 50-50 split?" If you are untrustworthy, then the two of you make that deal and I lose everything. A 2-of-3 set up doesn't remove the need for a trusted escrow.
A user with zero trading history of trust feedback offering escrow services is always a red flag for me.
- Public regulation (if necessary)
What do you mean by this?