The crypto market has experienced far worse volatility than this in its short life. The sky is not falling.
Supposedly China wants to ban peer-to-peer trading in bitcoin. Those transactions represent a tiny fraction of the market and are simply going to places like Japan. If a country tries to make cryptocurrencies illiegal, the crypto industry just moves to jurisdictions that are more friendly. Every time China has moved against cryptos, the markets have come back stronger after the initial hysteria.
In S. Korea, the exchanges are just becoming subject to more regulation and customers have to comply with Know Your Customer laws. That's no big deal. Anytime you open a bank account you have to do the same thing.
In the long run, government regulation is positive and will lend credibility to the space.
And remember, most governments don't have a position on cryptocurrencies. They are therefore legal everywhere except in countries where the government has specifically said they are illegal.
I think that as long as people are responsible with their position sizes, don't risk more than they can afford to lose and have a diversified portfolio of quality cryptos, patience and discipline will win out in the end. People who bought cryptos even 6 months ago are still sitting on substantial gains.