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.
I don't think I've misunderstood. My point is that strict regulations are exactly the reason
why exchanges end up freezing accounts and seizing coins. This kind of behavior will not be decreased by stricter regulations. On the contrary, this kind of behavior is actively endorsed and promoted by governments. It is the governments passing down regulations which say all coins which haven't come from a KYC linked address or wallet are suspicious. Compare this to DEXs which are not bound by such regulations, and never freeze or seize coins or even have the ability to do so.
If the governments of the world get their way, then the only way to use bitcoin will be on a centralized exchange.