It's worth noting that this distinction between who technically isn't complying and who will actually get prosecuted is a big part of why people have such different feelings about GDPR. Some people are focusing on the difficulty of complying and the penalties that could be assessed; others are focusing on the unlikelihood of small, mostly-compliant, well-meaning operations being targeted.
Also worth noting, this kind of selective enforcement can absolutely be used in a harmful way or have unintended negative consequences. I'm just trying to point out why a jurisdiction might pass a law even if they don't expect anyone to abide by it.
"I have mixed feelings about the Japanese Airbnb news. On the one hand: does it seem like the optimal regulation? Probably not. On the other hand: my condo’s live-in supervisor had to update their “We will call police if we spot illegal tenants” policy with “Note: Patrick isn’t”"
(patio11 is that rare thing, a Western permanent resident of Japan, and has lots of tweets on the subject of how Japan combines legendary, genuine politeness with a system that excludes non-Japanese)
But this doesn't stop you using other services. While non have the same inertia and awareness amongst the public as AirBnB there are several so it is easy to get around the limit by using several providers who don't talk to each other.
(We have been having problems with a neighbouring flat that is being run in this way. The details are murky but it appears to be intentionally managed like this)