I think when cryptocurrency is legal in your country the government must regulate it and provide special laws such as tax rules, transactions and permits, not regulating how cryptocurrency itself works because cryptocurrency is decentralized which the government cannot take part in
To control the development of bitcoin or crypto, of course, it will be very difficult for the government, but the government can only make regulations that do keep crypto under their control without them being able to fully control it, now many governments are starting to regulate crypto as a type of investment that is indeed allowed as long as it is not used as a means of payment.