Instead of banning, the government should let its people know the risk of using crypto, guide them on how to protect their crypto-asset or the safety/savings like what they do here in my country.
I don't think we have seen any government thus far do that aside from the known 'be careful with crypto because it's a high risk asset class' type of warning.
These type of events are great for the local peer to peer market because what else will incentivize people to follow that route? If people are being treated nicely by centralized exchanges and governments don't really make a point out of it, then what incentive is there for them to go peer to peer? In these cases governments are helping the crypto ecosystem in general to become more distributed. Not bad.
