Except people start reselling legal drugs to the jurisdiction where they remain illegal... For this to work out as intended it would have to be planet-wide.
1) illegal drugs are still illegal, just like now.
2) the quality of the illegal drugs rise significantly if sourced from reliable, regulated manufactures
3) the "blood" cost of production drops precipitously
4) the end user cost drops as well.
Now without support, those addicted will still flounder. However they won't need to do as much crime to fund it (much better for society, worse for the individual)
