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?
Yes, you are right that it is a consideration for the Government, so they do not legalize Bitcoin. The government wants to set up Bitcoin, but the Bitcoin price cannot be controlled. Perhaps a comparison with gold is always a steady price.
Money laundering and financing for terrorists can occur with the use of Bitcoin. Something like this is a big problem. However, each country must have high security. Maybe we should be patient to see the illegal Bitcoin because so far it can still be developed.