This is the entire point of regulation. When there is information asymmetry (a natural phenomenon of these Bitcoin exchanges) honest agents are always disadvantaged compared to dishonest agents. There is very little the honest agent can do to prove their honesty that the dishonest agent can't simply lie about. That will eventually chase out a lot of the honest agents who are selling high quality and therefore pricey products. In the end you are left with a market flooded with both dishonest agents and low quality products. The idea of regulation is to combat this information asymmetry and ensure that even the bottom of the market qualititywise is not below some acceptable standard.