Thats a false equivalence because folding at home is literally scientific research, and conversely in a literal sense mining is burning electricity to turn it into money without any other purpose. It doesn't generate a product or anything, is just how much energy and GPUs does it take to get X amount of money.
I agree that it would be difficult to have such a ban in most democratic places. On a personal level I think that bitcoin mining is definitely not something any government/economy system was ever designed to deal with, and an argument can be made that it's a modern problem that governments are generally too outdated to deal with; and with that in mind the only reason I would even mention it is because of the climate issues the world is facing. Seems like a bad time to be burning more and more energy just because a weird process now exists that will turn energy into a virtual token that can be sold.
Abundant clean energy would be great, and it would definitely solve this problem but that's still a long way out. That's actually one of the interesting things about this particular situation though. I don't know enough about it, but from what I understand this mining setup will burn waste coal (I think it's also called coke) and in doing so it will clean up some area contaminated by waste coal. How environmentally beneficial that really is in the end is well beyond my understanding which is why I didn't comment more about this particular situation, but it raises the point of the increasing power demand from mining. China is literally shutting down factories due to power shortages and slowing down the world's supply of the same chips people want to use to mine with. Seems like a recipe for disaster and at least in China's case it's understandable why they are starting to crack down.