Not not working at all, but not running that smoothly.
There is a saying that the existence of regulations is meant to be violated or not to comply with those regulations.
Maybe this is one of them.

However, this doesn't mean it really doesn't work. because of some systems, it works quite smoothly. It's just that, sometimes it doesn't work in certain situations. When it comes to banking and cryptocurrency regulations, with blockchain technology being able to make banking stakeholders confused by the concept of digital currency, they will actually tighten regulations regarding several things. And it seems to be successful in several countries. because these rules will certainly be enough to regulate the space for blockchain movement and development, and they will definitely want to regulate it because they want to immediately control it. But it's true, it won't work 100% because blockchain is more than that. There will still be gaps where people will work outside of regulations and regulations will not work for them.