So many anti bitcoin laws and policies that seek to undermine the existence of bitcoin have been made by government and countries all seeking the centralization of currencies within it region and since bitcoin is a decentralized digital currency most government are against it.
Governments are afraid that they won't be able to control Bitcoin but at the same time, they know that it's a source of income for many people and they don't want a wave of protests. In fact, it will be the silliest step for them to ban bitcoin. They choose better tactics that will help them to gain more control over time and all of this will be done smoothly: Make bitcoin-related laws and set regulations on exchanges and bitcoin-related services, over time and smoothly. And whoa, it works.
The whole process to gain control on bitcoin is a very complex task and it's a long-term plan. If you could use bitcoin without any kind of resistance in the past, today you need to be KYC verified in order to exchange money, you have to pay taxes if you got your wage in bitcoin and/or if you got profit from your bitcoin investments.
You have to understand human psychology here. The things that I mentioned above didn't happen overnight because it would cause protest but when you slowly do it, then people start to accept it. You can even compare this process to meds tapering on addicts. They taper the dosage slowly and slowly to make the process less painful and in long term, the user gets out of it without pain but if someone does cold turkey, the user is in enormous pain.