I have heard some stories about making bitcoin transactions illegal. It's all been a humor and I don't think any government have officially made bitcoin transactions illegal. Why is that?
Many governments are trying to regulate bitcoin, control exchanges and force people to be authorized. But I am sure government wish bitcoin was not created and there was no trouble of regulating bitcoin. They prefer their fiat to any other currency.
Why no government have made bitcoin transactions illegal?
I think they want to avoid creating an underground market.They don't want bitcoin to be traded like Alcohol and drugs. They have to accept bitcoin as they cannot stop a decentralized network and now they can only try to regulate it. Do you agree with me? Is there any other things have caused governments to not make bitcoin illegal?
Now many states are preparing for the adoption of rules for regulating cryptocurrencies. G-7 countries and European Union countries are already ready for this. Therefore, soon we should see its massive legalization.
We also know that there are about a dozen states in which it is forbidden to use cryptocurrency. In these states, its use is either impossible or very difficult. Basically, these are states with an authoritarian form of government, where the rights of citizens are not respected.