Didn't it take a fairly long while before client money laws came in even in traditional banking? I don't have a date so I could be wrong, but taking the history of british banking I have a feeling this was a relatively recent thing. Being generous, we're still within the first decade of crypto as an investment instrument, I imagine regulations haven't quite caught up so really it's no surprise newer crypto companies like Coinbase aren't particularly serious about keeping client money/assets separate.
And as much as client money should be segregated, some big names are still getting dinged with CASS breaches - Charles Schwab in 2020, for example.
I sincerely believe that you, the user Havoc, are a responsible, sensible person who would handle client money as if you were operating a well-regulated financial services firm, even if such regulations weren't in place. However companies are not necessarily built that way - if they don't have to do follow some rule that could be considered a bit burdensome and (arguably?) not applicable to them, they likely won't. Why follow rules that might not apply to you, given that you are using a new-and-exciting instrument that you could credibly argue fall outside any existing regulations (and if doing so could permit you to speculate and make a bit of extra money)?
And as much as client money should be segregated, some big names are still getting dinged with CASS breaches - Charles Schwab in 2020, for example.