We just can't stop people to write a code or make a things. If any ever project should comply with regulation wouldn't it hinder innovation?
No bro, you are getting it wrong. If you regulate the system the problem of money grabbing second hand scum projects will reduce. Sure the government might want some developers making projects in tune to their needs but that is better than ton of scam projects ruining the name of crypto all over the globe.
I'm aware of how much copy-pasta project that already exists and the one that pops out every time. But regulating people how to make things is beyond my imagination, it would be devastating.
It will be for the good only. You have to understand that every government wants its users to innovate and develop new things, that is how the countries are able to grow and that is how the government pitches itself in front of the world stage in order to make a name there. It is a part of the democratic politics, you will understand if you look at it from a broader perspective.
And it does not mean forcing people to do something - that is not democracy. Rather it is make sure that project that have no value are keep weeded out from the mainstream. Of course this leads to scam projects going for niche populations who dont follow this, but very soon they also understand whom to trust and they shun such projects too. You can compare this with the scams that run in a country's underbelly while the legit projects only run in the light.