~snip~
Probably they aren't ready for crypto currencies. I mean they don't know much about it. They have no clue how to track it and regulate it. Probably they think bitcoin is "evil" and will be used only for "evil" purposes such as money laundering. Did they put a total ban in your country? I have heard only few countries did that and most of them are poorly developed. Has no advanced technologies and only little education about blockchain.
Sad, your government think the only way to fix it is through putting a ban instead of trying to learn more about it.
Of course they know what Bitcoin and Cryptocurrency is. They're not banning any crypto related stuff If they have no clue why they have implemented such thing.
If this news is not exaggerated, then I guess they might have seen something not good when their people starts advocating Bitcoin.
You can't blame the government who had bad impressions about Bitcoin because of it's history that it was being used in the black market. However, not thoroughly learning the technology will give you a disadvantage in a world where technological innovation has been rapidly changing.