It's funny when people that do not have any idea about technology wants to regulate Internet. Someone can just use application developed in other country, what they will do ? block the site on ISP level? People will link to thousands other sites that will have binaries of this application on facebook/twitter/any other site.
They can't even handle piracy and they think that they can control whole Internet? When I hear that kind of proposals I always have this picture in my mind: