Bitcoins operate off central Banks meaning the government can not control its supply or influence its value like they do with fiat currencies. This threatens their ability to manage national income. Also since Bitcoin can be pseudonymous, the government worries that people may use it to evade taxes, launder money,Or finance illegal activities.
Why are some embracing it while others seek to regulate or restrict Bitcoin??
the countries that embraces bitcoin know how bitcoin works.
the other are luddites, afraid of new technology, literally if you're using bitcoin to launder money you're a fool because it's transparent ledger, anyone can access, even with bank transfer only people with authority can access your transaction but with bitcoin as long as you can link the identity, everything is revealed.
just see recent bybit hack and how they are putting effort to trace everything.