People usually care about things only when they are affected personally or when someone knocks on their door.
Yup. We see it all the time with exchanges which have hundreds if not thousands of complaints against them for arbitrarily freezing accounts or locking up coins, and you see an endless stream of users saying "Well, nothing's happened to
me, so I think they are still fine/good/trustworthy/etc." Until next week when their account is locked and then the join the chorus of people complaining, and someone else tells them "Well, nothing's happened to
me".
Government regulators may try to add more rules and regulations but they are only valid if people abide and live by them, so majority of people should just refuse them and change their governments, it's simple as that.
Wishful thinking. Most people most even change exchange when confronted with hundreds of complaints as I outlined above. And even if they do, they just hop from one centralized surveillance exchange to another.
I am genuinely curious just how bad centralized exchanges have to get for the majority of people to finally stop using them. Given all the KYC, spying, reporting to governments, freezing or seizing coins or accounts, insider trading, fractional reserve, horrendous fees, dumping scam coins, the list is endless, I would have expected most rational people to abandon them by now, but they continue to attract more and more users. Centralized exchanges frequently just close accounts and keep the coins which were on them, so outright theft isn't the limit. Coinbase actively sold customer data to third parties, so that's not the limit either. Maybe they have to send someone to your house to slap your mother?