Even with government intervention and the enactment of legal framework, it can only minimize and limit scam projects to a certain extent. They will only disappear completely when investors stop being greedy and stop wanting to get rich quickly.
Scammer and fraudulent projects exist because of the greed of investors like us. We should not place all the responsibility or blame on the government.
That is better than nothing at all. Now, will someone still hates the government for joining cryptos when they also do their best to aid the known problems of this space? It may only have some draw backs though like exposure in anonymity but that is the reason on why scammers can now get revealed, tracked, and caught out. Greed is ingrained already in the human specie.
So it is unlikely that people will be contented in their life and won't want easy money anymore. The same thing can go to the other, that there will also be bad guys like the scammers/fraudsters due to the negative trait of greediness and the wants of an easy money.
That is the give and take part of centralization of crypto. You are seeing stuff like monero, the privacy coins, being delisted everywhere because governments wants to know who you are when you are trading. It's still decentralized in the way that governments do not control the coin itself, but they can keep track of people who do use it at least.
And if you do not want that, then scammers and hackers will take all you have and there will be no way of tracking them neither, but if you do let them, then they know every move that you are making.