The core protocol itself cannot be modified without the cooperation of nearly all its users. Allowing special rights to a local authority in the rules of the network is not practically possible. It is possible, however, to regulate the use of ziftrCOINs similar to other resources. Regulations can be used to restrict use of coins, which may lead to a decrease in or loss of the user base. Banning use of digital currencies would be a preventative measure against domestic businesses as well as markets from developing. In general, best practices for regulators are to develop efficient solutions that prohibit malicious use, while simultaneously not impairing growth of new markets and businesses. Cryptocurrency Regulations are still developing in this area. You can follow some of the latest news here.