Well... I don't really know whether this is good news or not. It is certainly hot news, but a government regulating bitcoin is a two sided sword. Yes, merchants are encouraged to use bitcoin, and it is also beneficial for exchanges to operate on grounds that they will enforce KYC laws strictly. But then, it'll actually be harder for users to actually use bitcoin in their country becasue they'll have much stricter control over their wealth and government will just keep on stalking them to see how much bitcoin they have.

Japan and Australia legalized bitcoin, because they took off taxes and didn't add new regulations. India and South Korea on the other hand, aren't benefiting the actual users of bitcoin at all. They just want to have a grip on bitcoin, before it overtakes the fiat economy.