I think it's possible. But is there a need for this? We all understand that the money from taxes can be directed to the development of the country. But won't it cause the opposite reaction? Cryptocurrency legalization may provoke an increase in cryptocurrency crimes and hacker attacks on wallets. Of course it can happen now, but with an increase in interest in cryptocurrency, new processes in the criminal environment will begin to work. But that's just my guess.
The legalization of crypto will certainly increase interest and crypto will quickly become more popular. But this does not mean that there will be an increase in crime in the crypto industry, once legalized and regulated by regulations, scammers and hackers will be more closely monitored by the government.
Currently, many countries do not consider bitcoin to be legal, so criminals who have taken advantage of that loophole can blatantly create scam projects to profit without harm.