A lot of people assume white label crypto exchanges are just a shortcut, but that is not entirely true.
The real difference comes down to execution. A well-built white label solution can save months of development time, reduce cost, and still offer strong security and scalability. But not all providers are equal, and that is where most projects fail.
This business model has too many significant flaws to be serious. First of all, they do not provide any protection to the user and have very little influence on the flow of the user's funds.
What they offer is a crypto exchange, and that is not too difficult a task. The only good thing is that because of this, many will do a little better research on which swap service to use and avoid resellers.
I think there are some which are serious, although they are not privacy-friendly anymore. And they were important in the past.
When I first discovered crypto, in 2017, I used a lot swap services like Changelly. In that time there were no KYC , no AML, etc. Those services were much cheaper for small amounts (no withdrawal fees) and privacy-friendly. Very quick and convenient.
Over time those services changed, became highly regulated and became somewhat problematic... Funds frozen, many exit scams, etc...