Pretty shortsighted and disappointing to see a lack of imagination - like a legislator/regulator who finds the whole subject too complicated and just wants to shut it all down.
Sure, there are scams, but that's not enough to justify a complete ban on everything "crypto-currency related". This means if I create some software that tracks assets - not even using a blockchain - just a regular old centralized database I can't advertise on Google because it's "related" to crypto. A LOT of things are related to crypto, which have nothing to do with scammy ICO's. Not allowed to advertise Bitcoin T-shirts? How about little foil-covered chocolate Bitcoins? Nope, sorry.
Idiotic. But that's what you do when you can't think with any kind of nuance, and the people who are in a position of making these decisions simply can't.