Despite the massive growth, advancement and advantages of Bitcoin and most crypto currency, why is it hard for most countries to fully accept it is or permit it's exchange?
Because they don't have knowledge and afraid with its volatility. That's it that officials have negative thinking is just hook by the old system and don't want to put an effort to learn lot of things about Bitcoin.
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.
They can and there are lots of ways to do it, they can impose a mandatory taxation on those local platforms they are operating if they really want to do it.
2. They're a country where most of the citizen are Muslims, Bitcoin is haram in Islam, hence they ban it.
It's debatable and its not been said that Bitcoin is haram, I have lots of muslim friends using Bitcoin. No definitive consencus about this matter.
Also Dubai a majority muslim nation is Bitcoin friendly city, lots of people out there are using Bitcoin so this is proof that actually Bitcoin is fine to be used by people in that religion.
3. They hate Bitcoin.
Yeah this is accurate since maybe their own interest like businesses on which they are benefiting a lot is badly hit by Bitcoin and they can manipulate people mind because Bitcoin somehow offers freedom.