Do we need to regulate crypto so that more countries will allow it?
No, it needs no regulation. Even if you want to, how are you going to do that? 🤔 I dont see it possible in anyway at all. Any country that doesnt want to allow the use of Bitcoin is their own choice, you cant force them to do so. Bitcoin is meant to be used by people and it gives them complete control over their money. So you shouldnt be expecting regulation, its not going to happen at all.
You might be thinking of regulation in a way of controlling the currency, like what banks do with cash. A simple legal registration for companies conducting an ICO is an example of regulation. If people are confident that they can participate in the world of cryptocurrency with a very minimal risk, then adoption rate would increase further.