If they ban it or regulate it, this presently shows a weakness in the bitcoin ecosystem.
Bangladesh banned bitcoin many years ago and Japan, El Salvador, and a lot of other countries adopted bitcoin. Neither showed "weakness in bitcoin ecosystem", this one is no different.
Anyone can argue that they might not do it because half or more of their energy sources are renewables. However, the regulators can always have the ability to ban cryptomining because it has become a business that needs regulator permits and licenses to begin operation or be approved to operate. The danger of a ban will always be there.
They can't ban cryptomining, they can only ban mining farms, and only in their own jurisdiction which means miners will migrate to other places.
Keep in mind that the Europe's hashrate is not really that high specially since Europeans have high electricity costs.
I reckon there should be a development and engineering team formed to research on Asic resistance.
From what I've seen there is no such thing as "ASIC resistance". If anything can be mined with any kind of hardware, a more efficient hardware would be invented to mine it faster and someone will purchase large numbers of that device to have a bigger "share" of the total hashrate.
I believe OP has a point. I have said it before, the centralization, and “cartelization” of mining has become a problem, but NOT a problem WITHOUT a solution. The bans will be mere inconveniences. Plus finding the solution for “ASIC resistance” is a useless undertaking.