Why make it illegal if you could just regulate it and get taxes from people who make money with Bitcoin?
That's a whole lot of revenue for the government that they would be missing out on if made illegal.
But Bitcoin is actually also illegal in a couple of countries:
https://atozforex.com/news/top-countries-where-bitcoin-is-illegal/Instead of forbidding the bitcoin I think the government is interfering in bitcoin. In the near future, the government will introduce legislation on the use of bitcoin. it will be managed. All risk of using bitcoin will be limited