The fact that BitConnect was able to operate for 20 months before shutting down is about as close to "unregulated" as you can get. When you see the amount of rubbish ICOs hitting the market (inc Bitconnect), it means there is no gatekeeper to decide who can and cannot raise capital. That is unregulated.

The fact they were shut down following notices from Texas and North Carolina more than a year after they commenced operations would suggest that any criminal system is playing catchup to the crypto system and this form of legal regulation is miles behind based on the fact ONLY two US States issued notices to Bitconnect.