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Regulated with provisions for safety. I'm all for the idea it should be in a specific license location, like love hotels or massage parlors or something like that. No going to someones house or a different hotel.
And unionized, and the employer pays for (without touching employee pay):
Every room should be required to have a poster listing employee rights.
Aside from pricing differently for specific services (handjob vs blowjob etc) tipping is illegal.
No employee (particularly owners or supervisors) are allowed to receive service at their own location or any owned by a same parent company.
The owner and any shift supervisors are required to take a class on these regulations and sit for and pass a licensure exam.
Independent workers can receive a special, less restrictive license (that includes basic sex ed but mostly focuses on informing them of their rights and that independent means independent not "your boss just doesn't want to get a license" and keeping people with intellectual disabilities or low educational level from being misinformed of their rights as a sex worker).
They worker will never face charges for not having a license but their boss or any John (Jane?) / client who can't prove the sex worker or company was licensed (or that they were significantly or intentionally misled) can.