Yes, I think they can co-exist. For instance, this article states how other countries do it.
https://cryptocoin.news/analysis/adoption/cryptocurrencies-vs-governments-can-they-co-exist-20006/“Japan, in turn, embraced cryptocurrencies to capitalize on the crackdown going on in China. The government issued licenses to almost a dozen cryptocurrency exchanges. Most of the regulations in Japan are meant to increase security since Japan has recently had some high profile hacks.”
“in South Korea, most of the regulations are meant to combat money laundering and tax evasion. For example, cryptocurrency exchanges can only do business with people who use real, verifiable names on their bank accounts. South Korea has recently established a new organization called the Financial Innovation Bureau, to encourage the cryptocurrency industry.”
See? Crypto can exist and thrive despite having regulations. I think the rest of the world should follow suit.
