I think instead (or perhaps even in addition to it if they must) of banning left and right, governments should send more efforts into educating people about money, finance, risks, how to do taxes. It should be started early in schools in my opinion but you don't really see that anywhere in the world. I for one want to spend my money freely, if I think something is worth my money and I do it from a position where I know there are risks, not just rewards and if I fuck it up, it's my fault first and foremost.
So I don't think ICO's are killing crypto, I think people's greed and lack of research and risk control is.