In nature cryptocurrencies are decentralized, however with government intervention and KYC its becoming centralized. In a dangerous price manner of cryptocurrency its good for investors to have protection specially the small ones, without governing bodies we can't sue anyone who is violating others. But I believe that power and control over should only be vested to individuals or holders.
It depends on people, because not everyone understands why we need decentralization. Most of people just don't care about their area of freedom and for them its ok to send passport, photo etc. And ofc government won't allow something decentralized.