easy solution is to use bitcoin directly, no exchange needed not fiat involved, no dumping ever, you can almost buy anything using bitcoin now, no reason to use fiat anymore
Not sure how would that pan out. Mind you, most people jumped into the bitcoin train because they want to multiply their fiat holdings by storing it in a highly-volatile asset which is bitcoin. If they are to restrict themselves on using exchanges to convert their holdings to their respective currencies, I think it would be a loss for them. Also, the fact that there are only a few merchants around accepting bitcoins is enough reason to not restrict yourself from using exchanges with your bitcoins.
Honestly, creating a central database to 'keep track of anti-money laundering and fraudulent acts' is somewhat scary, but can also be a good thing. The thing is, we all know how the governments are hungry for surveillance, and once they got the necessary info about you, they'll take note of everything you do, every single day. If exchanges are open about handling sensitive information about their customers, then I might just seek for ATMs or other ways to convert my bitcoins even on a slightly-off trade.
Good thing I don't live in Europe or NA. I'm free from those regulations, yey!