Let me offer an alternative answer to the question you posed upfront, advocating a balance between no regulation and tight-fisted control: in a situation with low state capacity facing immense challenges, we're better off in opting for the "no regulation" approach even if it might lead to the consequences you mentioned. See this paper for the line of reasoning, with examples: https://www.independent.org/pdf/tir/tir_24_2_01_rajagopalan.pdf
Let me offer an alternative answer to the question you posed upfront, advocating a balance between no regulation and tight-fisted control: in a situation with low state capacity facing immense challenges, we're better off in opting for the "no regulation" approach even if it might lead to the consequences you mentioned. See this paper for the line of reasoning, with examples: https://www.independent.org/pdf/tir/tir_24_2_01_rajagopalan.pdf