It always depends what regulation means.
In this case:
New laws part of Government's efforts to combat money laundering and terrorism financing
AUSTRAC would be given new powers to monitor digital currency exchanges
These exchanges would be required to identify customers more stringently and report suspicious transactions
So we have:
1) The usual culprits, money laundering and terrorists
2) Monitoring the exchanges which is both
good: slimmer chances to have another gox,mintpal, etc etc
bad: it probably involves monitoring also the users and their trasnactions
3) Which is actually 2b, it's pretty bad as reporting suspicious transactions usually means freezing assets , fiat or coins.
And we have the exchanges reaction:
"There is likely to be an ongoing expensive compliance cost, particularly in regards to ongoing transaction monitoring," said BTC Markets' director Jarrod Crane, who is supportive of the proposed laws.
So... mixed feeling from everyone.