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?
Some countries have recognized Bitcoin and can be used as a means of payment at merchants. It is difficult for the government to ban the use of Bitcoin because Bitcoin is a tool for peer to peer transactions. The government should regulate Bitcoin or other cryptocurrency and take advantage of cryptocurrency transactions, for example by taking taxes
In my country, bitcoin is not yet legalized not treated as an illegal one. The government is just fair enough seeing that there are more potentials that bitcoin will be adopted soon because of the growth of users every year. This is the reason why some few banks in my country have been starting to advertise bitcoin because of its unstoppable positive patronage from the people. With this, banks will come to integrate bitcoin as part of their transactions so that they can still serve those future bitcoin users even if the government itself has not yet finally legalized and adopted bitcoin.