In an ideal or perfect world, we don't really need regulations because people would be following the principle of fairness and selflessness but we are not in the ideal world and so we need regulations in order to protect ourselves from people who are just waiting to crunch us alive. The only problem is when regulations are set-up not to protect but to also kill or stifle the very thing being regulated.
One area of concern for regulation is accountability. For example, without regulations placed and laws enacted for the matter, an exchange can just closed its business leaving many members holding empty bags because their funds are gone the moment the site is not anymore operating. And because the people behind the site are anonymous members don't know what to do and where to seek help.
I also felt uneasy about regulations but if done right this can be for our own advantage and the whole cryptocurrency movement.
Exactly my point and that is the reason why the argument of regulations will continue to win everyday and its because the major players are giving room for such. Imagine an exchange site that would wake up and close up, get hacked, treat customers like they are doing them a favor for coming to patronize them, customers support is not responding and no matter how you complain, they just seems not to clear. It does not happen in the real world, banks don't just close down, they don't treat customers anyhow without having to deal with complain from the Central Banks, I have seen banks refund for extra charges taken from my account simply because someone is there to call them to order.
Its not all good for banks too, but some bit of regulations is required for sanity to return to this crypto world because only then can trust on a large value is placed in the industry and hopefully we can get there.