Great example of the worst type of regulation, it doesn't do anything to solve the problem, but hinders poor people instead.

The gold market is less volatile because the market cap is way higher, not because you have to pay more for small amounts.
In physical stuff it does make at least a bit of sense, because it requires more effort to do several small tradings instead of a big one.

Btw: Wouldn't the opposite reduce volatility? Banning the selling / buying of big amounts of BTC? So nobody could dump 2000 BTC in a day.
(Obviously this is in no way practical or desirable)