Bitcoin is not legalized in some countries for several reasons, mainly due to concern over financial stability, government control and regulatory issues.
What are the reasons why some government had banned or restricted Bitcoins??
Many countries in the world are not legalizing Bitcoin. There are many reasons behind this. Before saying this, the first reason that comes to mind is that Bitcoin is a completely decentralized system. As a result, it is not under the control of any country or government, which is natural. And if the government of a country cannot control the financial system, the government of that country thinks that the people who use Bitcoin will evade taxes. In addition, there is a banking system in every country to keep economic transactions going, where banks profit through financial transactions. The central bank and other banks keep the financial transactions of the whole country running. If Bitcoin is launched in any country, the banks will not be able to continue their business, which is why the banks will fail to maintain their efficiency.
Again, Bitcoin is unstable in nature, it was seen that after the government legalized it, many incompetent people bought Bitcoin with the money they used and the price decreased, and they suffered losses, then they will blame the government or seek compensation from the government.