Now let's start with the obvious fact basically decentralization and privacy is on a losing streak currently this is because government controls literally a lot of things and that includes how centralization is being expressed generally. They are just a few privacy and decentralization enthusiasts out there and they are quite limited in most of their actions take a look at exch like you mentioned.

Also for the aspect of privacy take a look at monero for example literally no CEX accepts monero currently and that is basically the play of the government since they can't control something as private as that.