Yeah, but most people opt for exchanges and VC-backed wallets instead of dealing with custody. The reality has become even more regulated than banks. I've lost access to my Coinbase account, which I used to facilitate some fiat/crypto transactions, simply because of my nationality (I'm Russian but have been living outside of Russia for a decade). It was right after the 22/02 and the massive sanctions.

I wouldn't say fintech or neobanks are very trustworthy. Wise, a fintech platform, blocked my company's account for four weeks for "further investigation" right after the war as well. This caused me to miss bill payments.

I think the only way to mitigate the risk of a bank taking over your funds is to not store all your money in one account. Now, I have over 20 different accounts.