There seems to be only two options: 1) allow bitcoin complete freedom 2) make it illegal to accept bitcoin as payment. The second option seems more likely at the moment, be the first is still possible
Making bitcoin illegal may work in some parts of the world for a short period of time, but long term this draconian strategy will prove to be both politically unviable and technically impossible to enforce.
Ditto banning digital culture sharing ("piracy" being the ignorant capitalist slander term).