Governments can issue regulations as they please. No doubt about it.
The promise of Bitcoin was to leave governments unable to enforce any kind of regulations using technology and decentralization.
The problem with that promise is that it is enormously expensive for consumers to run Bitcoin nodes. Therefore everyone uses third parties, there's not that many of them and there's absolutely no way for them to stay resistent to regulations.
So as I see it, there was a time when governments couldn't enforce their regulations to decentralized currency. Now they can.
What do you think? Is the Bitcoin promise broken?
I think the government have ways to regulate cryptocurrency and bitcoin but it is not going to be easy, making a move in the market could easily affect differently the economy of the country.
I think bitcoin cannot be regulated in a country as a currency, to be an implemented currency in one country just like fiat money we need to regulate the currency itself to control the price of the money,
it is different in bitcoin because it depends on its market price in the supply and demand of the users and we cannot implement a currency that is over a thousand market value. It is better just for the bitcoin to be a secondary currency all over the world that we could use as a currency and also as an investment.