No, that's not because of government restrictions, as if government restrictions would be a problem then from the start, BTC might not have been adopted by people. The main problem is we have to be physically there to withdraw money from such ATMs and in many countries that is a bit risky because here in my country, if I would be using a dedicated BTC ATM and people saw me, some of them will surely think I am so rich and must have lot of money.

This is not safe, as anything bad can happen therefore, with this fear most of the crypto users don't even share with anyone that they are involved in crypto. So how can they go to such ATM and use it openly. Besides this, ATM fee are a bit higher but that's really not an option, and in my country there is not a single BTC ATM, as before it was illegal but now it is legal here as well, so I think we need BTC ATMs here.