Government is controlled by the highest bidder. I think we should be prepared to do this ourselves by refusing to accept money made by unsafe businesses, even if it means saying goodbye to the convenience of fungible money.
While this might be true for the governments you have personally experienced, this is far from being an aphorism.
But participation would be voluntary, and the restriction of harmful behavior would apply to it's enemies, not its citizens. So I'm not quite sure what the problem is.
If only enough individuals are willing to buy these services, then again we all will bear the consequences. There is no way out of this where libertarian ideals can be used to come to a safe result. What makes this even a more wicked problem is that decisions made in other countries will affect us all as well, we can’t isolate ourselves from AI policies made in China for example.