See also Russian hackers being notorious simply because Russia is willing to turn a blind eye to cyber crime that doesn't target Russia

Crime being illegal doesn't prevent crime, but it adds an enormous amount of friction. In the West if you are decent at hacking, low-level APIs or reverse engineering you could turn to cyber crime. But if you instead get a regular job in cyber security or software engineering you still get a good salary, and don't have to worry about your online friends being police informants, can tell your potential significant other what you do to earn a living, get money wired directly to your bank account instead of having to go through costly intermediaries with significant risks, don't have trouble with the tax authority, etc.

If you reduce the legal opportunities and remove the downsides of the illegal ones the calculation completely changes, and with it the talent pool