Why is preventing people from starting a legitimate business a good thing?

So give me the bull case where there’s a regulatory gray zone and institutions who really don’t understand technology get to decide how it should be operated. I’ve been in contact with Finansinspektionen on multiple occasions and there’s a pretty low understanding of technology in general. Another detrimental aspect is that there’s very little competition to the regular banking system because of this.

So since HN is a place primarily for technologists who like to push things forward, maybe you have a stronger argument than just saying that you’re a Swede?