[zodiac]

I think the necessity for regulation shows that unregulated payment processors leads to market failure (due to the nature of that market under current non-blockchain tech). Regulatuon fixes this market failure, but I see regulation as a last resort due to its being a high overhead solution (you rely on courts to interpret the regulations or check the statutory agencies, on the agencies to do their work, on lawmakers to keep the laws up to date). Of course, it is an open question as to whether blockchain tech can lead to the payment processor market not to suffer from market failure if unregulated.