when the government forbids a very dangerous situation. The government uses all its power. commence criminal proceedings. and many people's assets can be confiscated. This is a very dangerous situation. market collapses.
And how exactly are going the governments to confiscate your coins if you have taken the right measures to store your coins in a paper wallet or a hardware wallet? They cannot do anything that is why they are trying regulation instead because they know the moment they ban cryptocurrencies they will get nothing out of this huge market and they are desperate to get money out of people.