Some of the governments just wanted to save their people from scammers and Ponzi Schemes because when people are still learning about crypto and others in their country are still ignorant about it, the scammers mix real information with their schemes and encourage their victims to invest in their project like the old cloud mining we once had in the internet and it was the most trending at that time when there were no ICOs and other. right now, people need to have proper knowledge about crypto so that their government will have no problem opening the opportunity to invest for them.
It is understood that governments like to save their people from scams. But with their actions, even the legit ones are also affected and that's how they take the issue.
And people can't do a lot with this because they might go against the government and it's always their final say that will be followed by the law. Just get the positive take on it that they're also driving down the scams and tracking the scammers to serve the sentence that they deserve. At least that's a good consolation for one to take.