You don't have any checkbox custom field on your registration form. What you have is the terms view. The terms view is only checked at the end of the checkout and it works fine on your checkout. When I arrive at the end of the checkout, if I didn't tick the terms checkbox, I get the message:
Please accept the terms and conditions before proceeding
and I'm redirected to the step where I can do that.
The terms and conditions view of the checkout is there to ensure that the user accepts them before finishing his order, not for the registration.
If you want a terms checkbox for the registration, you should create a new custom field of the table "user" of the type "checkbox" and required instead of using that view and the users won't be able to register unless they tick that checkbox.