We often deliver news about a certain country acknowledging bitcoin or cryptocurrencies and immediately assume that it is good news because finally they will have clear regulations when it comes to crypto. Another reason why this is considered a pro is because people trust bitcoin more and thinks of it as official when endorsed by the government.
However upon inspection, sometimes you will realize that the government acknowledging bitcoin is not actually a good thing. First of all, the government's acknowledgement is limited to only being a speculative asset and not as a currency that can be used for official transaction. Second, their rules and regulations usually include AML and KYC which totally strips away investors' privacy and disregards decentralization. Third, governments only acknowledge bitcoin to implement high taxes which only drives investors away.
So at the end, not all kinds of acknowledgement is good.
So you want Bitcoin to remain a "darkweb currency" used only by criminals and a bunch of internet geeks? Is that what you want?
KYC is mandatory for all financial services. You can't open a bank account or a trading account without KYC. I don't see anyone in the fiat financial sector complaining about KYC. If we really want Bitcoin/crypto to become mainstream, then we should play by the rules.
Some countries have clear crypto regulations, others don't. Some countries have high taxes, others have low taxes. There's no perfect solution here. If you really want a high Bitcoin price, then government acknowledgment is a must.