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.
That's what the issue is! Both with the scammers and with the beaurocrats as well. With cryptocurrency, scammers have got a way to siphon out money and the beaurocrats think the main problem is with the cryptocurrency rather than the scammer.
It's same story in every third world country. Even in India, our finance minister thinks that cryptocurrency is the main problem and not the scammers. That's why educated youths of the third world countries, always think of moving out to a better place to live. I am no exception.
I guess the bottom line here if the government of your country is really doubtful in crypto, bitcoin will surely never gain acceptance. And those crimes involving bitcoin indirectly are not the main reasons really, although they may contribute a little. This happens not just in a single country but to all countries who are up to the present opposing bitcoin's legalization.
However, i must say that its not bitcoin who is being used in most of the crimes but its connected mostly to fiat. And yet, the government is not making any restrictions from using fiat. So its always clear that the government is one sided and they should always in favor in things that they can take full control of.