If you need crypto to avoid the legal framework when transferring value, accept the risk and operate accordingly. If you want crypto exposure as an asset class, find a custodian who will hold the crypto for you offline, prove it is offline, and allow you to borrow or otherwise leverage it as an asset on fiat or capital market rails that provide you recourse. Anything else is pointing a gun at your feet.

Analogy is holding and trading gold underground that hasn't been mined yet using securities or other representation subject to capital market regulations and the legal framework. Is it an asset? Yes, if proven, documented, etc. Is it safe? Yes. Will you get your value back if the capital market representation of the underlying is stolen? Most likely (finra, sipc, etc).

But having live value on rails that enable instant movement globally with no recourse for unauthorized transfer? You're gonna have a bad time.