Regulation is inevitable, and it may be good in the long term.
It will give more stability to the market, as those "China ban bitcoin" news will disappear.
But bitcoin cannot be controlled or domesticated by any regulation. They will realize that soon or later.
Like I always keep saying, this is actually something we cannot hide from in the long run and we will get to see more countries from all parts of the world coming up with their own regulatory frameworks and trying to implement it.
It is not a problem though, it just clarify things with where government of most countries actually stand when it comes to the cryptocurrency space and business, and now that a lot of them are beginning to understand the advantages that lurk when it comes to the cryptocurrency space, I am sure they will be trying as much as possible to do everything to make it work.