Helping hot private companies stay private -- maybe forever

Actually the article is more about trading in "secondary markets", something that had been completely off my radar:<p>"the secondary markets -- the private exchanges where early employees and investors can sell off the shares they hold in not-yet-public companies to willing buyers."

Basically taking advantage of the fact that those markets are small and not yet regulated. Am i right to believe that the secondary markets operate in a gray area and that regulation will put them out of business?