This is quite expected since we all know that cryptocurrency really has the potential to be utilized by people illegally (well, just like the fiat too) and so some governments (UK specifically this time) to be ready for an era where cryptocurrency is part and parcel of our daily lives. I am sure they had set-up almost the same mechanism for the illegal use of the fiat money as well. There will always be a tug of war here and nothing surprising anymore. The government is just doing its job but in cases where it overstep the boundary then it is our responsibility to call out and criticize them.