I personally am a supporter of rule of law and regulations, of course, only when done reasonably well.

Before we delve deep into those subjects, we have to realize we don't and can't live in a perfect world, and any system and social organization comes with its own pros and cons and there is always a give and take.

Now, when it comes to cryptocurrency, I see very little need for regulation and law enforcement intervention but there are two things I thinks should be illegal and prosecutable in regard to this market - fraud and theft. If you are making a fraudulent ICO that is in fact a pyramid, you are a criminal and you deserve some punishment. Now while I think crimes should be prosecuted and punished, I'm not sure that it's the state's job to give you reparations for things you have been scammed out of or things that have been stolen from you.

I absolutely agree that if you are making a risky investment, you are assuming the risk and thus should not be protected by some central fund mitigating your losses or something. But I do think some protections like knowing that fraudsters would be prosecuted is something that makes the whole market more stable and reliable and would not be a bad thing.

Still, with crytocurrencies being international and decentralized, regulation would be quite difficult and can't really be done well at the state level as coins essentially stateless assets. While knowing that fraud would be a prosecutable offense in regard to crytos, I would rather not have governments trying to regulate the market as I don't think many are equipped to do a good job.