Yeah but for how long... Sooner or later those exchanges will be given 2 options:
1- Do as we say and keep your business (or what's left of it)
2- Go to jail
In the end of this, xmr will be just like what btc was once. A low marketcap coin only the drug dealers use.
That's certainly true, mate. Centralized exchanges will have no other choice but to comply with government regulations in order to maintain their business. This could lead toward the de-listing of privacy coins as we know it. While this is inevitable, Monero can still be used "under the table" due to being "private by design". There are some decentralized exchanges trading XMR out there, in case everything goes down the drain. It's evident that a coin like Monero will gain negative reputation in the mainstream world, since it can be largely used for illicit activities. This alongside exchange de-listings could lower the price per XMR, lowering its market cap as well. As long as XMR remains actively developed and supported by the community, it won't be going anywhere. You can still trade XMR in decentralized exchanges, P2P trading platforms, or even in-person. There's no need to worry about centralized exchanges going "rogue" on XMR, since this is to be expected.
In the end, transparent cryptocurrencies like Bitcoin and Ethereum will remain largely relevant in the mainstream world as centralized exchanges dominate the crypto space. The minority will be trading and using Monero regardless of what happens in the long run. I wouldn't worry about XMR getting de-listed on most (if not all) centralized exchanges, since there is a workaround thanks to the decentralized nature of crypto. Governments will declare privacy coins like Monero and Zcash to be illegal, while traditional cryptocurrencies will be legitimized. In my book, Monero will be a one-of-a-kind cryptocurrency unbeatable by external forces in the mainstream world. Just my opinion