All of this is a solved problem in equity exchanges world. Escrows, SPIC etc. No need to reinvent a wheel that was invented after learning from so much of pain.
So regulators either come down heavily on these exchanges or they will let retailers continue to get conned.
Its a solved problem in crypto too. Shapeshift allowed for swapping of funds while always having control of the keys, but it was given hell by regulators. If it were allowed to grow maybe things like ftx wouldnt have gotten so big
So regulators either come down heavily on these exchanges or they will let retailers continue to get conned.