Fundamentally, laws have jurisdictions that they are valid in. Imposition of a law outside of a jurisdiction is problematic at best, as it enables some bad actor countries (pick and choose who you want to consider to be in this group) to export their internal battles globally.
A great example of this is the US's FATCA rules, which have resulted (at least initially) in many non-US banks denying banking options to US citizens. Due to the threat built into the law, of being unable to leverage US banking system, if they fail to comply.
As someone else commented, the road to hell is paved with "good intentions". Solutions will emerge to route around the liabilities and costs this creates, but probably not initially.