What Is the Risk of a Coordinated Regulatory Action across Multiple Jurisdictions on Mining?

A coordinated regulatory action, such as a global ban or synchronized high taxation on mining, would be catastrophic. It would cause a massive and sustained drop in the global hash rate, severely compromising network security and leading to a collapse in the cryptocurrency's price.

The network's only defense would be a very slow difficulty adjustment, and the economic incentive for miners would be destroyed.