On one side, it prevents fraud/scam and on another side, it really expensive. Without some kind of regulation, we will see more and more scam ICOs. There must be some balance between regulation and freedom.
Regulations don't prevent scams. The only thing regulations will do in that regard is cause a shift where it will no longer be amateurs setting up schemes and whatnot, but professionals knowing how to stay out of the picture for a very long time. The danger with this is that the current scams are easy to spot, but that later on won't be as easy anymore with how well set up they are.
I am quite sure that if BitConnect was run properly, it could have existed for years without imploding. It all comes down to how greedy and poorly operated they are in the end. These greedy baboons will make place for smart, conservative and well instructed entities that will legally scam you out of your funds.