Implementing Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements for crypto exchanges and wallet providers is the most effective regulatory strategy to address concerns about capital flight and circumvention of financial regulations. These measures:

• Monitor and control transactions: Ensure that transactions are traceable, reducing the risk of illegal transfers and regulatory circumvention.
• Prevent capital flight: Limit the ability of individuals to move large sums of money out of the country without oversight.
• Strengthen regulatory oversight: Bring crypto-related activities into the formal financial system, aligning them with existing regulations.

A is incorrect: While real-name registration sounds like a plausible solution, it is practically difficult to enforce, especially for decentralized or offshore platforms. It also does not prevent users from creating and using anonymous wallets outside the country.

C is incorrect: Promoting stablecoins does not mitigate capital flight risks, as stablecoins can still be used to move value across borders. Additionally, many stablecoins are pegged to foreign currencies (like the USD), which could exacerbate exchange rate pressures.

D is incorrect: While transaction limits might initially slow capital flight, they are easy to bypass using multiple small transactions or through decentralized platforms. This approach does not address the core issue of monitoring and controlling crypto transactions effectively.