Yes, Bitcoin is designed to be a decentralized crypto currency without transaction censorship and it cannot be controlled technically. But nowadays most of the mining pools that have a lot of ASICs are located in China, and many investors do not like such situation. One day the chinese government can ban all the mining pools by restricting connections through their "great firewall". In this case, the global Bitcoin network will be temporarily paralyzed until the mining difficulty is reduced. I think this is a vulnerability.

I agree that the regulations are necessary to prevent money laundering and to control criminal activities, but policies of governments are different.