TBH there were a few people warning of this when all exchanges began requiring 2factor authentication - KNOWING 99% of people would use their phone and google auth app. When regulators approached exchanges they simply checked google play to prove exchange did business with many eu or us customers. People even made videos how to link google account with exchanges.........
But Google Play doesn't just cover only EU or US customers. Also, exchanges are not the only accounts that use Google authentication app for 2-factor authentication.
The pressure from regulators mostly comes when exchanges start to buy and selling crypto using fiat currencies or accepting fiat deposits and withdrawals. Think about it.