Yes, it will be quite sad for me to hear that they banned bitcoin because of some fraud and illegal activities they should consider the good use of bitcoins.
Even if they legally restrict the use of bitcoin there's no guarantee that criminals will stop using it.
Many countries prohibits their citizen to earn bitcoin because of that idea. Bad news leads to the government not to legalizes it. But some areas in the world has been accepted bitcoin as a legal money and it can be the payment for the things that you have been purchased. Hopefully someday it could be accepted and recognized.