Regulation is superfluous, the key is PREVENTION
You can have all the regulation (i.e. laws) in the world but they are meaningless. Does GCHQ bother about laws? Laws are for law abiding people, just as locks are for honest people.
It's illegal to listen to decrypted cell conversations or peoples voicemail boxes but it sure didn't slow down Murdoch and the NotW gang.
The GSM encryption schema is weak, as has been described in Reg before, the US government requires there be back doors n ejcryption devices. Only a very few, like Phil Zimmerman, give them the finger.
But this is nothing. Wait until Cameron puts a smart meter in your house. Then there are the smart appliances that go along with them. Already, in Korea, you can buy 'smart' appliances. Start a washing machine load,but read the screen, the machine might have been to to hold off until later when it gets the OK from the smart meter.
Same with defrosting your fridge, chat chat chat between the things in your home and the smart meter and then to the electrical supply company.
This isn't future technology, this NOW technology. It isn't paranoia, it's fact.
Police get on line, real time, access to all manner of utilities - it's one way they learn about abnormal power consumption for drug growing - and it will increase.
Say Plod wants to raid your house, a push of a button and your smart meter can cut power.and since the power meter is controlled by the power company, they don't need a warrant.
If you want to stop this spying people better start investing in ferrite rings (for power cords) and study Faraday cage construction for that smart meter - a large piece of mesh across the back wall before they mount the meter is a good start.
I, personally, am happy that some segments of the population are waking up to the fact that government is not only in your bedroom, as Trudeau once said, but they are in your pants.