If the government is against the black money the easier solution is to regulate BTC, because if they ban it, people will continue using Bitcoins and government won't have control over it, regulating can make things easier to manage for the government, what doesn't mean it will be better for ordinary people using Bitcoin for honest purposes.
I think if bitcoin is managed by the government will certainly change all rules that have become bitcoin performance system, of course function of bitcoin freedom will be eroded by new regulations that may be applied by government
The main reason as to why Bitcoin was created was to fight against the corrupted governments and especially banks. But you know, there is always a time when we should sacrifice one thing to allow bitcoin to survive. I am for the regulations. But they should not impose such strict ones even for the taxes because people want to start something, not to give it to the governments. I hope they legalize it as soon as possible.