the news doesn't read positive to be honest!
it is talking about two things, investing in cryptocurrencies and the blockchain technology! the first one is just for taxation purposes because there has been a large volume (most of which has been fake) on Korean exchanges and the government wants his share. and the second one has nothing to do with bitcoin or even cryptocurrencies. it usually ends with the government creating their own centralized cryptocurrency!
a good news would have been if they adopted bitcoin as a "legal way of payment" so that they recognized bitcoin for what it really is, a currency.
Yes, you're right mate. If it is accepted in other countries just to be controlled by their governments, it seems bitcoin does not serve its purpose. All transactions will be revealed by the government just to earn taxes from it. But if their governments will open businesses that would accept bitcoin as a way or mode of payment maybe it would be of great help to improve bitcoin and increases its demands in the market.