... The lack of faith in these companies makes it very hard to go long on bitcoin. ...
There's Gemini -- fully regulated, US-based & backed by big bux :-
regulation brings a lot of things like strong AML, verifications, etc. The most Bitcoin traders prefers to stay away of this thing.
Also, Gemini is used by americans only.
So... You would like an unregulated, implicitly criminal exchange (because AML
laws, as a minimum would have to be based in some Somalisan), which doesn't verify users, that you can trust?
Gemini, Coinbase, Circle and Itbit were regulated last year. I think they are the only regulated exchangers. How do the BTC users have funded their accounts until then? By using UNregulated exchangers.

Also, so called big exchangers like BTC China, Okcoin, Huobi, Bitstamp, Btc-e are NOT license so are not regulated. Do you know where is BTC-e office?

More than 90% from BTC market is not "regulated". IF the most exchangers will have financial license, BTC value will drop to almost zero because the black market(more than 85% from BTC) is not interested to share personal information and they will migrate to other e-currency like they did it in the recent past from Liberty Reserve or from E-gold
1. Guy complains that "lack of faith in [exchanges] makes it very hard to go long on bitcoin."
2. I suggest Gemini, which is regulated and backed up the wazoo, to calm his fears.
3. You chime in, suggesting that bitcoin traders are
money launderers don't wanna be linked to the overpriced drugs/child porn they buy with bitcoins rather privacy conscious.
4. I respond by subtly hinting that bank-like trustworthiness is exceedingly rare in institutions breaking KYC/AML laws.
5. And here ya are, and it's a beautiful day. Well. I just don't understand it.