Regulasi aren't a golden bullet against scammers.
Regulations cannot guarantee a project is a scam or not, but regulations provide guarantees for us about the security of a project, for example, we choose projects whose regulations are given by a country, then the possibility of the country providing regulations also protects the security of the project, so why do projects that have regulations have fraud? I think it's because fraudsters instill rules or even the names of public figures to make their projects as if they have legitimate rules.