I think government regulations is good for cryptocurrency. It only implies that if there is regulations, there is recognition on the part of the government.
In that sense, crypto enthusiasts feel more secured and confident with their investment.
Right now as we can see there are negative aspects of bitcoin too. This is being used in underworld. All sort of crimes and problems are being carried out with bitcoin because of its anonymity. No one can trace you back so people are using it for ransomed and all such crimes. So it would be great if government takes some good action and regulate is thoroughly.