Regulating cryptocurrency for banking purpose would only create a centralized system and we will see more of centralized coins arise which will already divert from the bitcoin main objective that it was created for.

Although we need it to an extent, but I think that the most important regulation that we need is that which will make cryptocurrency legal and can  involve legal authorities because of all these atrocities happening, because cryptocurrency is not yet regulated legally, people are even scared of reporting any cryptocurrency theft to the security agencies because they are scared, since bitcoin has not be legalized, and even the security agencies may not take urgent decision as to going after the criminal through investigations.