In some way, we still do need the government in this picture. Just look at how we convert our btc to fiat, these local crypto exchanges are under the jurisdiction of their respective Central Banks. Unless, you will cash out via p2p but most services available are also asking for kyc documents. No matter what, government will play a role in this crypto adoption, we can't evade them in this scenario.
Yep, governments tends to control everything. They always like to interfere where there are income generating activities or assets. They always feels like everything's deserves to be taxed or regulated.
Now, what they did is to regulate legal crypto exchange and requires KYC before fully using the exchange service.
The essence of anonymity in crypto space has been gradually eradicated.