Do we need regulations in the crypto world?
In the current situation that cryptocurrency is facing, I would say yes we need regulations. Governments are doing their own initiative to declare regulations so we are heading there and we have no choice but to follow it.
Should only ICO be regulated or legit coins (not "security tokens") too?
All crypto's.
Can we implement regulations mechanisms in code so that corrupted governmental institutions couldn't manipulate the industry?
Only officials has the authority to this.
Can we still have free market with governments' regulations across the world?
Yes.
I think we need to have a regulations in order for us to have a fair system.