if an exchanger wants to be regulated, then it must ask for KYC.
If they want to be regulated, they themselves shouldn't be anonymous and hiding in some tax haven. Regulated companies (and governments) leak enough data as it is, I'm not sending my personal documents to unknown actors.
It can't be regulated in any other way.
Many Bitcoin casinos and exchanges started this way: some guy creates something nice that gets out of hand, and suddenly they're earning a shitload of money they can't spend legally if they don't become regulated. Quite literally all the exchanges and casinos I first saw when I started in Bitcoin, went from completely anonymous to full KYC
or they stopped existing.
Also, trust doesn't come because an exchanger is regulated. We will never know if and when an exchanger is fraudulent or blows up like a firecracker.
If it's registered in my own country I'd trust it a lot more than if it's somewhere I have no idea how the legal system works.
That's the reason that we try not to have everything on them, it's not our wallet, and will never be.
Agreed! Only send to exchanges what you want to exchange, and take it out as soon as possible.
since they refused to do the swap, I asked them to return the funds back to me. But they haven't responded... That's unethical, isn't it?
Some would call it theft.
It's a catch-22 for good, trusted anonymous exchangers: being good and trusted means they'll get bigger. And if they get bigger, they'll eventually become a target for authorities (or at least some of the many different authorities out there).
That makes it impossible for any anonymous trusted exchange to exist for a long time.