The government should fear the people, not the people fear the government. If it was the latter, it will be oppressively communist-ish.
I suggest making it legal, and restrict the movement of drugs, ie; only supported retailers are able to sell it. I suppose having an age limit would not be too bad either. The only problem with this is education, whether the people are educated enough to take risks smartly, and know how to prevent themselves from being addicted.