Governments have an issue with crypto because they dont understand how to control it. How can they make sure taxes are paid, how can they track usage and payments. These are all things that can be done within the current monetary system. Little by little they are warming up to it because they are finally starting to understand it.
Yes they have these issues with the cryptocurrencies but if they will study the whole system of blockchain they will understand that the citizens will not deny to pay taxes if they will legalize cryptocurrencies and will provide facilities for the users of cryptocurrencies. If they will facilitate us then we will also pay fees the same as we are paying to the exchanges.
Of course, you can find many different reasons why the government does not want to legalize cryptocurrencies and the main reasons have always been the lack of opportunities to implement control of the cryptocurrency turnover and taxation of users who are anonymous cryptocurrencies owners. But it seems to me that we still need to pay attention to the governments ability to print new money, which is why inflation is growing. If people use Bitcoin, their number is limited and governments will not have the ability to manipulate funds.
Cryptocurrency is decentralized, its value is controlled only by the users not by the government. In this way it can easily reduce inflation and make the state of countries with poor currency more stable. It is controlled by computers so no authority can manipulate it. This is the biggest and only threat the governments have of cryptocurrency, as they never want to lose their control over money. Not only money it is the control of whole economy.