Regulations should bring some security to the investors in terms that they won`t be scammed. It is not good if each country would have their own regulations, it would be preferable to have global regulations.
I agree with you about setting up regulations on using cryptocurrency. It would not make cryptocurrency useless with regulations. One of the issues of cryptocurrency is the security of the investors. Scammers are taking advantage of the no regulations system. Not just scammers, even criminals and illegal transactions are easy to deal without any trace. These are just some reasons why some governments are not recognizing cryptocurrency. The economy might be affected by non-traceable transactions.