Regulation actually usually means control, the government recognizes their inability to influence Bitcoin and use regulatory means to exert a bit of control over the market and to get revenues from tax paid on Bitcoin investment.
The governments are basically trying to protect themselves, in the guise of preventing the citizens from making a wrong financial decision.
In fact, this is not always a bad thing. After all, regulation and licensing can attract a large number of people who are afraid to take risks, and therefore do not want to invest in crypto.