The government's job is to control everything in your country, they don't like the uncontrollable things, from the internet or the banking system, everything is monitored by the government and it is impossible for bitcoin manipulation because it is a decentralized system, in addition to the transaction is not taxed or disclosed personal information, it can lead to money laundering actions, which can damage the country's exchange rate ... so accepting cryptocurrencies is not yet possible, but I believe that in the near future the government will see how big the benefits of cryptocurrencies are and maybe they will amend laws to make cryptocurrencies legal.
Let's also remember that governments are just there to protect all of us, it is not because they are too greedy that they can't control it so they can't regulate it, but they just wanted to protect those people especially who has lack of knowledge in investing, as we all know it is very hard to accused scammers and file a case to them, so let's just understand them in a positive way.
Maybe that is because the government cannot regulate the cryptocurrency, because we all know that cryptocurrency is decentralized meaning there's no one or any organization or group of people that are controlling crypto. Since it is decentralized they do not know where to give taxes, maybe they could give taxes in some bank that we used when we are actually withdrawing it and convert it into fiat. The regulation of cryptocurrency itself is hard for the government since we are earning online, the idea is that we are making money in a digital world wherein it can be access online all over the world wherever you are, you just need an internet access.