The hostility comes from them not been able to control it, they are trying to discourage their citizens from embracing it but so far all their attempts has failed. With this you should understand that its second purpose is been achieved. Bitcoin has never been regulated, the worse the government can do is what they're currently doing. They are trying to sabotage any service that brings adoption to the currency. They can only regulated centralized service providers but that's fine because it only encourages more decentralised service which at the end is what we need in the industry.

The government loses no matter what negative decision they take towards the industry, you don't keep your enemies far instead you draw them closer so you can monitor/observe them to attack on their witness. That's the approach the government would have taken if they want to stand a chance at defeating Bitcoin but that's unlikely to happen.