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If other countries also do not provide crypto legality this will have problems with crypto developments in the future, but this is unlikely to happen, in the future increasingly sophisticated digital financial technology will definitely be needed around the world to facilitate transactions.
it's an old problem, that's what makes bitcoin full of pros and cons. although there are several countries that prohibit the use of crypto, there are still many countries that allow it, some even have discourses on creating their own crypto currency. see, although many prohibit transactions or payments with crypto, investment and trading are still allowed, this shows that crypto is indeed very potential, on the other hand there is a side that is less profitable for the government. so this is not a problem, usually legality issues come up every year, creating waves in the market, but no need to worry.
Well, I think the way it is going to happen is rather top down, with Bitcoin being top and governments being down. If there is something you can't stop, pretend to embrace it and regulate it / pass laws that you think will appropriately be considered by most of the users. It won't be possible to fully stop Bitcoin. That is a bit similar to gambling websites online. In some countries the governments understood that there is almost no way to fully stop them. So how to benefit as a government regardless? Raise a little bit of taxes, such that gambling websites feel the urge to pay their taxes to play it safe because playing safe isn't that expensive. Bitcoin is similar to that kind of situation. If they prohibit it, they are probably going to raise public cost by a lot only because they have to pursue all these "criminals" who deal with crypto. Drugs is another example, but you get the idea.