Holding unregulated crypto is just like engaging in scam ICO or any Crypto in which the integrity is in question. I see this is a normal standard operating procedure for any government to look upon the welfare of their people specially if their hard earned money is at stake. So this is better than banning the whole crypto market specially Bitcoin.
But I see there aren't many coins that are given rules? What if it's a good coin but isn't regulated? yeah it can have a positive effect because you can avoid shit coins, but the negative is you will leave a lot of potential other small coins that are unregulated