China will be the first country to crack down on Bitcoin.
It's trivial for them to block Bitcoin communications over their network, they have the most advanced proxy filtering systems in the world.
I live in China. (I'm writing this on a VPN just incase).
They will be the first country to embrace bitcoin, because it's the cheapest way to move money into China. A good portion of all bitcoins will move to China as people use it to trade.