Sure it is, and will eventually.. You think of all the people complaining about bitcoin miners and the environment impact.. It's nothing on fiat.. Eventually fiat will die and all digital block chain will come out even if it's us block chain, euro block chain... More transparency less dirty than fiat..

Think of exchanges as a stock broker rather than a bank. Also since crypto is not government insured think of it closer to equities... But unlike banks these exchanges are not too big to fail and government is not going to come bail them out for shitty money deals.

But I can use my wallet and send you money without involving anyone.. I can keep my crypto secure with my pkeys and you won't be able to get at it, I can hand you my wallet and pkey and now all the crypto is yours no paperwork nothing.. You can take my wallet but it won't do you any good without my pkey..