The slipper slope goes in the opposite direction too. All behavior causes damages (negative externalities) to someone somewhere, but we don't outlaw all behavior.

There is a pretty well developed theory of econ & law of when it makes sense to have financial penalties and when it makes sense to have criminal penalties. I don't think I could do justice to it in this comment box, but suffice it to say, "only criminal penalties, no financial ones" is wrong.