So at the end, not all kinds of acknowledgement is good.
Bitcoin is decentralized, so people like it the most, but if the government of a country works against the decentralization by doing KYC, then it is not acceptable. If the government accepts Bitcoin and plans to centralize it to keep it under its control in their country, then it will be a cause of harm rather than the acceptance of Bitcoin. Bitcoin is moving at its own pace and will continue to move, those who believe in this principle will accept Bitcoin and it is better for them. Those who are trying to control Bitcoin will not be able to control it, but their efforts will be unsuccessful, which is why I cannot consider such governments accepting Bitcoin positively.
Simply put, the government won’t allow any decentralized currency to gain success in the market, nor to replace the position of a centralized currency. That’s their big objection, that’s why they are pulling bitcoin down secretly by pretending to accept and regulate bitcoin, but the real purpose is to make clear to the people that bitcoin has no power over to the government, or to the traditional currency that a centralized government has been backed up always.
But bitcoin is bitcoin, it can always retain its existence in the market without having to prove that they are better than the traditional currency, or to the government.