Yes, it’s stupid. But it’s the reality of things.
The point is it's regulated irrespective of the government's maturity. If it only works under a mature government, it's superfluous as a social tool. (Technology usually is.)
And, before it gets popular and regulated, it gets overrun by criminals?
Definitely the case with Bitcoin. I don't know about ProtonMail, though.
Bitcoin's 'criminal' use is/was 95% narcotics. In a world without a superficial 'war on drugs', where a state had no right to tell a citizen what to put into their own body, no user, no dealer would be criminal.
If you wish to fight crime, the solution might not be to 'make more things criminal', but to 'make less things criminal'.
On the other hand, I have been using bitcoin for cross-border value transfers where banks would have taken ridiculous fees, and I have used bitcoin for online micro-transactions where setting up other payment systems would have been expensive.
The governments have also regulated cocaine. It didn’t work there, either.
(I have several relevant devices, amateur licence and radios, etc)
For tomorrow we should keep exploring and adopting improvements. Pick your poison.
[0]: Discovery left as excercise for reader
It, of course, does not work for email. OTOH protocols like briar [1] theoretically could.