What regulations? From what I've seen all a company needs is to create an entity in the country they want to hire people. Since it's all remote they don't need an office or anything.
My hypothesis is that people are naturally lazy, so they find the easiest path. If recruiters know they have to go through extra loopholes and paperwork (if they don't have a system set up already), your likelihood of being hired decreases significantly. They won't admit this (illegal discrimination), but it is human nature.