regulations are not really "consumer protection" regulations, but instead businesses policing/auditing their customer.
heck regulations are not so much business policing.. again they are policing the customers of businesses. not the business itself, many times businesses get away with facilitating laundering of criminal activity if they simply report on the customer that requested the laundering service
I observed very similar things in finance the banks and regulators capture each other in a 'symbiotic' relationship and the customers suffer. My conclusion was that regulation is bad long-term and removes customer agency and choice.