What happens if an exchange is unregistered?

I'm curious, what exactly happens if a cryptocurrency exchange is unregistered? Does it mean that there are no regulations in place to protect investors' funds? Does it increase the risk of fraud or manipulation? Could it potentially lead to a lack of transparency and accountability in the market? I'm eager to understand the potential consequences and implications of using an unregistered exchange, as I want to ensure that my investments are safe and secure.