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Maybe. and then again, maybe not.
What say you, STS?
"Harsh regulation" meaning what? Effective non-game-able simple rule structures that apply equally to everyone in the game? Does that have anything to do with the sort of regulatory structures most people want imposed (and which will be nominally avoidable as a result)? I doubt it.
"Harsh regulation" is another word for "economic rent" or "regulatory capture" usually based on the methods of policy formation we use. So the answer is no.