Everyone talks about regulation, but how can you regulate a global, decentralized system? [SERIOUS]

As the title says, crypto is defined by it’s decentralized and borderless nature. Something like the stock market makes sense because companies are located in a country, and the exchanges are located in a country.

That’s not true with crypto. You can’t regulate a DeFi protocol without knowing the creator, which is often the case. And you can’t prevent people from using certain protocols, without fundamentally changing the nature of DeFi projects.

And even if you know the creators of said protocol, token or blockchain you would require a global regulatory effort to avoid people just setting up shop in another country.

The only way I see “regulation of crypto” becoming a thing is by cumbersome surveillance of users. They’re the people with the most money to be taxed, are easily surveiled via on-ramps and exchanges and don’t hold collective power as to being to skirt regulatory frameworks.

FTX is a great example with them being a Bahamas entity; people are calling for regulations, but it’s not even a US company.

So to the people calling for regulation; how would that actually look like?