I won't blame the government so much for trying to do everything to kill bitcoin, the government reckons that if bitcoin is allowed to enjoy a very smooth sail, a lot  of people will avoid the banks and embrace bitcoin instead for trans-border and even some local transactions thereby reducing the bank's earnings and consequently a reduction in government's revenue from the banks. The fact that it is difficult to tax businesses done with bitcoin gives the government another reason to want to kill bitcoin, government lose money when businesses are done with bitcoin.