The good side is that it can be a filter for fake projects, so that projects that are properly maintained can be justified legally.
Because of illegal projects I could have the potential for money laundering which would also harm many people including investors and users.
when talking about adoption and acceptance from the government, we are certainly aware of the rules of the game they will set. So far, what PBOC has done is correct to eliminate negative tendencies. I am sure they will also be more stringent for what coins can be traded someday, even tighter than what the US has done. The economic motives of sovereignty must always meet the element of profit for the country itself.