Bitcoin is indeed above government regulations, but each country or government has its own rules or regulations. The government will not fully regulate Cryptocurrency they only regulate the entrance but not for the inside. Don't worry, your personal wallet will still be decentralized and only you can manage it, because you own the private key.
So far it is true, they can only do that and can't seem to manage beyond that. So far I feel optimistic that Bitcoin will be even more profitable because the government has opened its eyes to regulations and even collect taxes. Even if in order all transactions can be tracked if ever transactions on exchanges and banks in the form of fiat. In fact I have read if the BTC Mixer service from Coinjoin has also provided support for transactions suspected of money laundering.