To be honest, I don't think that any government should have anything to do with monitoring or controlling cryptos at least for now.
But of course, China is China and they will do what they want.
As bitcoin and cryptocurrencies gain more and more publicity, it's really to be expected that we're going to have tighter and tighter regulations and control in general. And what way to gain control than to probably convince other people to use centralized custody?
And it's not only going to be in China. It's most likely going to be the same with the US and with most governments.