That's is not a bad thing. Japan is showing they will allow companies to legally offer services of crypto storages and other aspects. Cryptos need to become a legally business
It was probably a good thing imo. Sure, this means more control by the government, but that's inevitable if people want to use centralized exchange where there's a huge risk of hacking and so on. Limiting margin trading is also a good idea as some people are way too greedy sometimes. Like it or not, limiting margin trading would decrease the risk of loss exposure for those users.
Hopefully, more positive adoption will come.