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.
You can't tell that because despite all these negative and abusive use of crypto (like scamming and fraudulent activities) still it gains more attention than before. A lot of rich people and businessmen are investing in it now because of its popularity and market profit. And besides, these scammers and cheaters had already been existing before crypto and never have to blame crypto for why they come.
Although this could create some doubts and uncertainty in the community, however, for the risk-takers and techy people, it was just fine as they know how to avoid them. We don't need the government to have an interest, only we need them to understand and give support.
For me, i don't think the government cares about these scamming incidents as their minds are always closed when it comes to crypto. Even if bitcoin creates a good impact through those people who really know its value, i don't think they will consider it. They are only focused with their centralized fiat and how they can take advantage on it.
However, crypto like bitcoin has even become more famous today as its adoption continues to increase and its price will keep rising as its demand is becoming huge. So even if without government's approval, the rise of bitcoin has now become more inevitable.