The Wikipedia article op is referring to can be helpful, but it's important to note that it can be outdated or misinterpret certain things, as well as assume it's legal somewhere when it's just not illegal.
In any case, I agree that the lack of adoption is not on the governments. If we're talking about democracies, laws change actively when there's a strong public demand for something. The demand for Bitcoin as a form of payment is simply not high enough to prompt major changes and adoption. It can change over time, but let's also not forget that Bitcoin blockchain doesn't scale well (I'm talking about the limit of processed transactions per minute and transaction fees when the network gets congested). The op is correct to point at the importance of scalability.
Of course, people here can say that there are alternative, off-chain solutions to address that problem, but then we lose some of that decentralization and financial freedom that came with Bitcoin.
I couldn't agree more, my insight lies along the same spectrum as you guys do, although mine particularly leans more towards the lack of action on the government's part. Because let's be real here. Even if you argue that the government of this certain country's not allowing massive crypto adoption because of the fear of hackers becoming prevalent, the fact remains that it is not bitcoin that is driving these hackers to hack, it's the money to be made in the business and they could very well use any other type of payment channel that doesn't involve cryptocurrency and the results would've remained the same. More robust crime-fighting features and less about putting the blame to crypto is what I'm really at.
This isn't to say that crypto is to be blamed for some boo-boos in the past, for instance. Scammers and Ponzi schemers using crypto as their main driver to mobilize their nefarious plans. While the mechanism is pretty much similar to hackers the fault in this case lies upon crypto, considering the fact that it too, lacks features that would disable users from using it as such.