Regulations on crypto industry are still not strict enough and there are holes for exchanges to pull their shady cards to suspend, freeze user accounts.
The regulations on the crypto industry are exactly the reason
why centralized exchanges pull shady moves and freeze or suspend accounts - because they know the government is breathing down their neck at all times so they have to spy on all their users and freeze anything in the least bit suspicious. If you want
even stricter regulations then expect even more accounts being frozen, not fewer.
I understood but it seems you misunderstood my point by which I meant because of not too strict regulations in crypto, crypto exchanges feel like they can do shady activities against their users without fear to be fined by governments.
There are two sides always, stricter regulations will reduce scam exchanges but it will bring both advantages and disadvantages for cryptocurrency users.