Regulation can create demand for bitcoins. By making them a means of paying taxes or closing major financial transactions, it provides legitimacy to the currency. That naturally diffuses knowledge, familiarity and demand for bitcoins across a wider swathe of people, breeding acceptance. This is essential. This increased demand in turn can help manage the volatile swings that typify bitcoin today. The currencys volatility may be loved by speculators looking to claw profits, but businesses still file tax returns and accounts in dollars, euros and other mainstream currencies.
Making regulations might Bitcoin stay and work within a frame work and also it might makes some limitations for its users but any way regulations are essential for Bitcoin in order for it to be formalized and accepted by countries as a currency and one of the main reason why bitcoin haven't expanded and accepted by governments is because Bitcoin is considered as a uncontrollable asset which makes many politicians afraid to legalize it so Going under regulations to make it acceptable is certainly a good thing