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.
If you don't want to suddenly have unexpected accidental issues with your account (and money), just don't use mixers if you don't have solid reasons to use them.
Here's an analogy:
I am a merchant. You want to buy some things from me. You try to pay with cash. I say "I cannot see the full history of this cash, so I refuse your money". So instead, you tap your debit card. I say "I cannot accept this money without knowing the full history of it". I demand access to your bank account so I can see where all your money comes from. You leave and come back with your bank statements, but I don't like what I see, so I refuse payment. You then try to pay with PayPal. I demand access to your PayPal account so I can see where all your money comes from. You unlock your PayPal account on your phone and hand it over for me to look at. This PayPal money looks OK to me, so I accept it. You then leave the shop and start telling all your friends "Make sure when you shop there you have all your bank statements with you so the merchant can look at them, and make sure none of your money comes from anywhere except your employer, since they can't trace those funds." Your friends all look at you like you are crazy, and then simply choose to shop with the merchant next door who doesn't do any of this nonsense.
Whenever this situation comes up, with the discussion of centralized exchanges and privacy, it always seems that the default position is "Sacrifice all your privacy and let people spy on you so that you can use a centralized exchange". In any other financial situation that would be seen as utterly crazy, as I've just shown above, but for some reason with bitcoin people just accept this nonsense? The problem here is not mixers, or coinjoins, or Monero, or any other privacy technique - the problem here is centralized exchanges. If you don't want a centralized exchange to seize your coins, then don't use a centralized exchange. There are plenty of decentralized exchanges to choose from.
The logical position when faced with entities which are stealing coins is not "I should bend over backwards and sacrifice everything to hopefully mean they don't steal
my coins!", but rather to simply not use the entity which is stealing coins.
Most of the power of authoritarianism is freely given. In times like these, individuals think ahead about what a more repressive government will want, and then offer themselves without being asked.