Yes, the government can prohibit cryptocurrency. It's in his jurisdiction. We can only hope that it will be wise and do not go so
I think although bitcoin is prohibited even if it will not give a big effect on bitcoin, even now many governments prohibit the use bitcoin, but it did not leave much of an negative effect
That's bad if that is happening now in other countries where bitcoins are prohibited.. hopefully our government won't interfere in bitcoin community otherwise there might be a bad impact for us like converting our btc in our local currency there might be fees or taxes or even investigations on how did I earn those btc.