The governments seek nothing of Bitcoin but to gain full control over its transactions in order to manipulate the market to suit their own gains. The decentralized nature of Bitcoin does not allow this to take place hence most of the governments do not want to accept Bitcoin but rather impose regulations on Bitcoin.
The reason why the government dont want to legalize bitcoin because the government cannot control over the bitcoin.
Soon the bitcoin will be regulated by all of the government one of good information is British lawmakers mentioned on September 19, 2018, that the cryptocurrency market needs urgent regulations. The Government should take action to protect retail investors from volatile prices, technical vulnerabilities, and position U.K. to become a global leader in the cryptocurrency industry, given its position as a financial hub.
CryptoUK, the self-regulatory trade association for U.K.’s cryptocurrency industry also welcomed the idea of regulations. Ideally, the U.K. Government would introduce laws that is a right balance between, allowing the country to thrive as an international leader in the cryptocurrency sector whilst safeguarding consumers from potential scams and Ponzi Schemes.