You cannot regulate a DEX even if you tried to. The Blocknet DEX cannot be shut down, not even by the devs themselves as they do NOT own it, nobody "owns" the DEX, which makes it truly decentralized.
There will ALWAYS be a need for decentralized trading. You're pretty delusional if you think otherwise.
Ye? Really? Who owns the domain of the unregulated DEX site? Server? IP address? All of these people can be found and then either block them or receive information from them to identify DEX clients. The digital footprint is even harder to hide than in real life. I think that if the authorities want to find someone, they will do it quite easily.