Should China start to regulate bitcoin, other countries might start to follow suit, and that might not be a bad idea. However my problem is that by regulating they might want to start over regulate. Meaning that they would start "expecting" some form of taxes, tighter by taking control of the transacting fees for depositing and withdrawing from exchanges. They and the rest of the world governments realized only now that it cannot be shut down. And hell, then why should they not try to start make a profit from it.
Fiat currencies and moneys is created out of thin air by central banks, issued out to the general work force/ people, with the exception. It is not free and yes, you must pay interest in the form of taxes to use it. Bitcoin one currency is created from crypto algorithms, from crypto geniuses, to the world population, for free at a current transaction fee valued at about $0.20 cent per transaction. And now the governments want to regulate it...?
But like I say, they also see the need to profit from bitcoin. They eighter join or loose in the one currency revolution..
Andrew