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??
The simple answer is there are no government cant control bitcoin unlike the Fiat that gov can control it, freeze it and other stuff bitcoin is different with decentralized first. If you can't control something or beyond it you should scare of it, don't you?
To counter that government now created financial system called CBDC or central bank digital currency that easy to control but adapt blockchain technology and I didn't know if this gonna work or not in the future