The regulatory process and decision-making patterns of legalization of the sex trade and sex industry market recognition are the questions that the theories of government regulation have to explain and response. This article analyzed the different policy from (based on) the evolution of Taiwan's sex industry history, such as the formation of policy issues, policy choices, police decisions, the implementation of policy content, assessment and feedback effects of policies, etc.. We also try to explain the sex trade control policy reform from the legislative intent of ”Council of Grand Justices” No. 666 and ”The Law for Maintaining Social Order Act” Article 80, 81 and 90 by the regulation theories like ”market failure theory” and ”Capture Theory”.