We can work in such a gray indefinite status, but it cannot develop a cryptocurrency under uncertainty conditions. In order for the infrastructure to use cryptocurrency to develop precisely as a means of payment, it necessarily needs to be legalized by its state. Therefore, the period of time when the cryptocurrency is not yet legalized, but it is not prohibited, will not be long.
Indeed it needs to be legalize as whether we like it or not, in the end if it goes bigger, the government will still mind it for their interest to protect people and at the same time get their share of the pie. Crypto started to get more regulation and that means more strict rules but we have no choice but to follow.
Regulation is for all or for the benefit of all, so we trust the government to create one for us and believe they are doing it for all of us.