Yes this also one of the reason for invention of decentralization but still governments were finding some way to restrict the usage so we need to understand that governments can only restrict until we use that exchanges when we started using wallet and spend crypto as crypto it is hard for them to track.
I cannot really blame them, they are trying to protect their self interests and it's obvious that they do not like something like bitcoin because it takes power away from them and since they are realizing that they cannot kill bitcoin then they are going to try to regulate it but even that is going to fail, because what are they going to do if people really adopt bitcoin and begin to use it to buy all kind of products and services?
If that happens then no amount of regulation is going to be enough, you will always find a person willing to accept bitcoin in exchange for products and services and when that happens there is going to be a significant number of people that are going to abandon fiat completely.