How can one prevent exchange hack through rules and regulations? It can only increase the chance of not getting hacked if the businesses follow some standard security protocol and have adequate insurance cover.
An increase in the chance of not getting hacked means that you are preventing such hacks from happening into your company. Rules and Regulations is the key needed for such event to happen.
And after receiving a fair amount of criticism from the bitcoin users worldwide, Cameron came back with the statement that you've mentioned in the thread subject! Cryptos can't be regulated - that's an universal truth! However, I too strongly believe that the business entities must be regulated who are built around cryptos. because the mass adoption can only happen when there is regulation because it brings trust within the system.
It really cant be regulated but at least regulate the exchanges because they are businesses and businesses around the world are regulated by a law. Businesses that are regulated by laws attracts more costumer or investor alike.