Maybe in that country, bitcoin is considered as the currency used for evil crime in cyberspace, example as drug trafficking, because sometimes selling drugs on the Internet is using bitcoin. In addition to drug trafficking, many money laundering and hackers using bitcoin. It is why some country prohibit the use of bitcoin.
You can use fiat currency for terrorism drugs human trafficking so it does not matter what you do people will find a way to do illegal things and for that you cannot blame on bitcoin for all these illegal activities ,if government says so i would say they have no idea about bitcoin.