This is the real world consequence of regulation driven data collection. Once identity, transaction history and asset ownership are linked and stored, the risk no longer stays online.

Forbes

How Regulation And Data Collection Are Creating Physical Security Risks

Regulation and leaked identity data are creating new physical security risks for bitcoin holders, as criminals use personal information to enable c...

They do not exist to support financial inclusion or to protect individuals from fraud or scams. Their entire purpose is to keep the legacy system of gatekeepers intact. To do so, they essentially create busy work for themselves, writing rules that help governments further control their populations with threads of prosecution or confiscation, treating every citizen as a potential criminal, and wasting far more in compliance and enforcement than they could ever hope to recover.

And I thought the Bitcoin revolution was NOT about financial third parties/custodians/CEX holding, trading and sending on your behalf - according to the whitepaper. Why are you complaining? You use it in non intended ways.