Truth of the matter is that in the financial industry there are always cutthroat and dishonest players trying to find a novel way to bilk people and yet more people trying to make a buck in a reckless manner that endangers consumer money.
Ultimately it's not about crippling the crypto industry, it's about preventing fraud irresponsibility. Other financial sectors have to do this, crypto should be no different.
These markets are prone to scams and counterfeit. In response, various appraisal services rose up (like Beckett) that promise to verify the authenticity of these cards. They've managed to build community trust over time and are now a staple of the industry.
The same thing will happen with DeFi, it just needs room to grow and mature. I think your opinion will change once heavyweights like Visa join the club (see below).
https://www.coindesk.com/business/2021/09/30/visa-unveils-pr...
The crypto market is maturing and it's a shame that people like you seem to want to cut it off before it fully matures.