Despite the massive growth, advancement and advantages of Bitcoin and most crypto currency, why is it hard for most countries to full accept it is or permit it's exchange?
There are a few reasons but i think it hasnt been legalized because it is a rather new Asset according to the standard of Worldwide adoption. It has been around for 16 years, A long time but it hasnt proved its stability yet as it had many ups and downs in these years.
another reason might be
POWER, Governments Dont like losing Power and with Bitcoin's Decentralisation they are very likely to lose it as it gives people power in their own hands unlike Fiat Currency.
Because they have their own reason:
1. It's harder for them to tax the money, people have a way to cash out privately which make them can't maximize the tax, unlike stock, ETFs where everything recorded in centralized sites.
2. They're a country where most of the citizen are Muslims, Bitcoin is haram in Islam, hence they ban it.
3. They hate Bitcoin.
Your first point is right but i might have to disagree with point 2, and 3. Point.2 I am a muslim and can assure you that it is not haram in islam if you use it for preserving wealth or as an investment but it is when you use it For Gambling or other haram stuff. Point.3 i dont think thats true because no one hates anything that gives them profit or something valuable in return which bitcoin does so hating it is not a reason to not legalize it. It is not the Main reason for not legalizing but they can not like it because it gives them a loss. which discussed in your point 1