I am not in favor strict regulations for this industry but lighter are necessary to reduce the scams and fraudulent activities. If strict regulations were solutions then traditional markets and financial institutions were corruption free but they are biggest scammers and we often banks getting fined for such activities. Crypto need new types of regulations as it doesn't fit in outdated laws and regulations.
Whatever regulations implemented, if they can reduce scamming efforts to steal money from new crypto enthusiasts, it will be good for blockchain industry, generally.
Moreover, crypto world changes so fast, hence regulations should be updated as fast as possible.