Nobody is trying to control Bitcoin, because it cannot be controlled.
They're trying to force all exchanges to follow the KYC guidelines, this isn't bad. Bitcoin IS involved in money laundering & drug trafficking. This is an attempt to reduce these crimes.
Nothing is happening to Bitcoin though.

Exchanges can move to whichever country they want, but they cannot operate in Europe unless they follow these European regulations. Thus, a European citizen would have to move out of Europe as well.