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I can actually understand this one to an extent. A driver’s license and vehicle registration are only required to drive on public roads, not legal requirements for having a car. That said, taking a car onto a public road without the aforementioned is illegal and should result in a fine.
Driving an unregistered vehicle without any license on a public road is endangering others. So a fine would not be sufficient.
It’s the same arguing as carrying an unregistered weapon without a license in public space. That would be confiscated as well instead of being fined.
FWIW not everywhere has a requirement to register firearms.