That's not true at all. In theory, a perfect market will self-regulate. No one buys or sells from scammers and they are naturally outcompeted from the marketpla

That's not true at all. In theory, a perfect market will self-regulate. No one buys or sells from scammers and they are naturally outcompeted from the marketplace. However, in real world, markets aren't perfect and that's why regulation is needed, but it's up to debate. It can be argued that the market would always find a way to weed out scammers even without regulation. Over-regulation is also sub-optimal.