But no one will require that. When you do, no new money will flow into crypto and the music stops. And no one in crypto wants that.

So you want there to be as low of a barrier of entry as possible, which is how we get here...

Especially when transactions can't be traced

It doesn't need to be required of anyone. People are responsible for their own funds and have their own security/effort profiles. The "right way" of doing things will be discovered through natural selection.

If some idiot leaves all of their funds on an exchange like this, and it gets hacked, then good. That's how the market evolves and money moves out of the hands of the incompetent and into the competent.