The advertised benefits - non custodial ownership and peer to peer exchange - still work fine. Privacy is not a design goal of every chain but even on a public chain like Eth it’s easy to use privacy solutions like Tornado and now Aztec to achieve a level of privacy most of us would say is adequate - a similar level as Tor and E2EE messaging apps.

This regulation does little except to add an extra hurdle and unnecessary additional costs for average CEX users who want to withdraw assets to a wallet on the network.