Do you think that with the increasing legal restrictions in several countries like the U.S. China Hong Kong will just force diversion of that capital to ICOs in other countries? How would the governments track people's participation in ICOs when they shouldn't have access to their cryptocurrency wallets?
Yes, that's the problem. Government for obvious reasons want to centralise the market that is meant to be decentralised. Since they can't find a good way of doing it, they just start forbidding ICOs.
The bad thing about this is that the threat of an early ban of ICOs in the country causes scammers to work in two shifts as they have less and less time to gain money every day.