Bitcoin is operated by a non-government decentralized authority, which is the prime reason behind its transparency. All transactions through Bitcoin undergo massive computerized verifications. Anyone can access the public ledger where the Bitcoin balances are stored. IMHO, it will never be possible to regulate Bitcoin by any one centralised authority.
The transactions can't be regulated but in the price, that could be possible if the government will impose laws and certain regulations. In fact, this has been started by some countries, their strict regulation makes even get stricter but it gives safety to their people. Why? because this makes stopped any act of fraudulent activities that involve crypto. As with the transparency it have, the easier for the authorities to track activities like this. That is why it has been ask to comply KYC verification, not just for taxes but for the safety benefits.