Don’t let good be the enemy of perfect. Self custody is obviously ideal, but I don’t think _all_ people/businesses are ready to handle that level of technological responsibility. Having well-regulated entities in the space will bring stability, which will bring adoption.
Discussion
Without the option to simply remove your Bitcoin from their custody how do you know they even own it?
That’s a very good point. But if they claim to be holding your bitcoin, and you try to convert it, send it or spend it, and they cannot back the request because they were “lying”, it will be a very short-lived lie. They cannot print more bitcoin.
All I ask from any of them is to allow withdrawals. Otherwise it appears to be a ploy at dilution to suppress / manipulate price