In my country Someone bought a BMW Car by scamming in crypto transections and Police arrested him and told that the guy was a cheater and he was a crypto scammer.And this case is now the most viral topic.This incident shocked the whole country and also the Central bank authority about how he got this huge money and this incident put a bad impact in crypto.
I think Digital Currency like Crypto isn't getting much popularity because of these Scammers.They are one of the most strong reason why Government's aren't showing interest on Crypto Transections.
The reputation of crypto has been tainted because of these scenarios. It's just so saddening that people use this to do illegal activities instead of using it rightfully. Crypto has been the saving grace of some of us. It paved way to earning more income and profit whatever your social status is. Unfortunately, there are just abusers of the system built for decentralization who paint bitcoin and other coins on a bad light.
Despite this, it isn't enough to put the blame on crypto because it is only a tool just like with fiat. There are criminal activities recorded with fiat and crypto. The people who are using it to do things prohibited by the law are the problem. Also, i would just like to add that government's reason for not recognizing crypto isn't really focused on the scam, but because of its nature. Crypto is decentralized and and cannot be controlled not manipulated by anyone unlike fiat. Hence, government does not want any of it unless they benefit from it such as taxing it and regulating it.