Will the popularity of crypto continue? Yes. Soon a lot of people won't care about the government stance about crypto.
This is possible and because of that government will have to adopt cryptocurrency so that they can also benefit from people who have crypto on their wallets. Compared to a country where bitcoin is not banned and even the bank regulated one of the exchange wallet so that they can earn money more like a tax but those who use the wallet don't have to pay as the kind of payment for e tax happens when you buy and sell according to the information I read from google and some posts from forum users in this forum.
It is not the case of this is possible. Go and check the countries where their government places a ban on Bitcoin place like China, Nigeria, etc the people from there still buy and invest in Bitcoin through the use of p2p exchange. Besides, this reminds an article wrote by Chainanalysis explaining to the government that they can't totally ban crypto and it will be better they profit from it rather than ban it.
Country, where crypto is tax, have different rules and regulations about tax payment but most countries I know only request tax payment on every capital gain but Vat is a most when buy/sell crypto.