This is the part I don't like about the government of my country. Law enforcement agencies don't know much about crypto. They usually perceive crypto users as scammers because they don't believe that people can make money from the crypto industry. Keeping large funds in exchanges is risky because the government can easily freeze them and start asking for the source of income.

To avoid government problems, it is safer to keep funds in a non-custodian wallet and gradually move funds to exchanges if you want to convert to fiat.  But keeping large funds in a centralised wallet is a no-go area.